Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on July 19, 2010 at 7:02

80 acre HA spacing = 8 wells in a ~640 acre unit. The 80 acre spacing per well is applicable regardless of the size of a HA unit.

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Permalink Reply by R.R.Woodard on July 19, 2010 at 7:25

thanks Skips,
when we are pool like this do we as land owners get royalties from all eight wells

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Permalink Reply by Skip Peel - Mineral Consultant on July 19, 2010 at 7:34

Yes, every one. However it is possible that as drilling and completion designs evolve, operators may find they are able to produce the same amount of gas, or more, from fewer wells. This would make it more profitable for them and likely lead to mineral interests in the pool getting their full compliment of wells drilled more quickly. 8 is the max, not the minimum allowed by the state.

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Permalink Reply by R.R.Woodard on July 19, 2010 at 7:42

So Skip! dose this mean at the end of each month land owner will receive the production totals report of each individual well or a combine total of production

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Permalink Reply by DJG on July 19, 2010 at 7:43

Correct, if you are in the pooled unit, you will recieve your royalty for each well within your unit - regardless of whether the lateral for that well bore passes directly under your own plot of land/minerals.

Your royalty will be calculated based upon the proportional share of mineral acres you have within the unit.

Example: You own 20 acres
Unit Size: 640 acres

Means that you have a 20/640 proporational interest in that unit = .03125 or just a bit over 3%.

If your royalty per your lease contract is set at 25%, then to calculate your royalty you would multiply that 0.03125 number (your proportional interest in the unit) x 0.25 (your royalty percentage).

Your royalty "multiplier" would then be 0.0078125.

Which means that for every $$$ of NG sold from each and every well that is produced from within the boundries of your unit, you would then recieve 0.0078125 of proceeds from the NG sold (less any taxes or deductions allowed per your lease contract)

Hopefully that helps clarify things.

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Permalink Reply by R.R.Woodard on July 19, 2010 at 7:51

Thanks

All this INFO is very helpful

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Permalink Reply by Les Bamburg on July 19, 2010 at 7:43

RRW, Haynesville Units in southern portion of play area in Louisiana could contain up to 16 wells in a 640 acre unit.

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Permalink Reply by R.R.Woodard on July 19, 2010 at 7:54

thanks Les,

our land is in Desoto Parish

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Permalink Reply by Les Bamburg on July 19, 2010 at 8:00

RRW, the majority of DeSoto Parish should have the potential for 16 wells per section (640 acres).

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Permalink Reply by R.R.Woodard on July 19, 2010 at 8:07

Les is this 16 wells per section or per unit .

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Permalink Reply by DJG on July 19, 2010 at 9:35

The 16 wells would potentially be 8 Haynesville formation wells and an additional 8 Bossier Shale wells in the formation directly above the Haynesville. Yes, per the same 640 acre unit.

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Permalink Reply by ledlights on July 19, 2010 at 9:24

Is there such a thing in Louisiana as a Haynesville "super-unit" of 1280 or 1300 acres?

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