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Permalink Reply by Checkmateking on November 22, 2009 at 3:57

"That's probably what a lot folks that didn't put a depth clause in their shallow lease thought as well."

Please don't let me spoil the unicorns and rainbows for all you guys who will be oil millionaires, don't let geologic facts get in the way.

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Permalink Reply by Mac Davis on November 22, 2009 at 16:56

That's probably what a lot folks that didn't put a depth clause in their shallow lease thought as well.

This is a little bit different than the Haynesvillle shale situation.

Boone said that we "always" knew the Haynesville shale was there, it's just that there wasn't the technology and conditions to economically exploit it.

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Permalink Reply by Jere on November 22, 2009 at 3:44

This is a little off the subject but what is leasehold rights compared to mineral rights. I got this email from Petro-Chem which has a small producing well in our section:

"Petro-Chem and its partners own leasehold rights in the section, not mineral rights, along with interest in another 11,000 acres in surrounding sections."

This is about the producing well in S-11 T-15N R-10W. We got about $50 every 2 months. This is preventing us from leasing with other companies.
Also, does anyone know if there are plans for a well in this section.
Please discuss both.

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Permalink Reply by BirdDawg, plain ole' idiot on November 22, 2009 at 4:26

Jere,
PetroChem now owns only the existing wellbore of the CV well in your section. Questar owns the rest of the leasehold rights. You own the "mineral rights", Questar owns the rights as provided in any applicable lease.
And yes, Questar will be drilling a Haynesville in your section. They are aggressively developing their recently acquired leases they got from PetroChem, et al. I am sure they will have to drill some other units first to hold leases, but I do not think it will be a very long time before they get to Section 11.
If you don't mind me asking, when did you get the e-mail from PetroChem? It sounds like it was prior to the sale to Questar, which was somewhere around the third weel of October. Questar now owns the leasehold rights that PetroChem referred to.
I think you will be pleased with Questar as your operator of your Haynesville Shale well.

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Permalink Reply by Jere on November 22, 2009 at 4:36

Thanks for the reply, I received the email from PetroChem on 18Jun09.
What is leasehold rights though.
I look on some websites and they describe it as right to propery for a certain period of time. Does that time period mean indefinite if there is a producing well?

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Permalink Reply by Checkmateking on November 22, 2009 at 4:38

"Does that time period mean indefinite if there is a producing well?'
Correct, as long as the well is producing.

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Permalink Reply by BirdDawg, plain ole' idiot on November 22, 2009 at 7:37

Jere,
It means for as long as provided for in the terms of your lease. And yes, the producing well is holding these rights as per the terms of your lease.

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Permalink Reply by Bacon on November 22, 2009 at 5:29

"This is a little off the subject"

Way OT. This thread is reserved for people with no formal geology training (Google research exempted) to make absolute comments on scientific topics that we know virtually nothing about. : )

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Permalink Reply by olddog573 on November 22, 2009 at 4:54

Personally, I haven't seen any pump jacks arriving by way of I-49 but what would you rather have, an interest in a Haynesville at 18-20MMcf/day with the decline rates or an interest in the "oil deposit"? I think I'd rather have the Haynesville.

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