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Permalink Reply by Skip Peel - Mineral Consultant on June 27, 2011 at 4:18

It is highly unlikely that Chesapeake will extend any leases in Harrison or Panola counties as they have effectively abandoned that northern portion of the Haynesville Play.  They made an unsuccessful attempt to sell 100,000 + acres of leasehold in Harrison, Panola and northern Caddo and Bossier parishes in late 2009, early 2010.  They did have completed and producing wells in both counties which they continued to operate until quite recently.  Chesapeake sold those producing wells and associated infrastructure to NFR and that company is now listed as the operator for those wells on the RRC database.

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Permalink Reply by jr on June 27, 2011 at 7:17

thanks

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Permalink Reply by The_Baron on June 27, 2011 at 4:18

its actually an extension, not a re-lease or release.

 

If they want to extend the lease, they will send you a check in the amount agrred to on your lease. If not, they will do nothing. if they choose to let it expire, you may want to request a release (that is, where they formally acknowledge that they no longer hold the lease).

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Permalink Reply by jr on June 27, 2011 at 7:17

thanks...and it's actually "agreed" ...  lol...we all make typo errors

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Permalink Reply by Henry on June 27, 2011 at 5:03

Kudos to NFR.  One member of GHS.com who contributes to my gas-price survey told me that as soon as NFR took over his lease, his prices went from the usual CHK low price to a much higher price.

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Permalink Reply by Skip Peel - Mineral Consultant on June 27, 2011 at 5:09

Henry, you might wish to follow up on that to see if it is an isolated instance or more wide spread.  There should be a good number of GHS members with Harrison and Panola county wells who will soon be receiving NFR royalty statements which can be compared to the prior CHK statements for the same wells.

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Permalink Reply by w.r. frank on June 27, 2011 at 7:14

Since the prices change so quickly, you might compare monthly CHK royalty with the expiring NYMEX Future for that month (CHK as a % of NYMEX Future Expiration) and then NFR to NYMEX Future Expiration. You will probably find as all of us know in NW LA that CHK prices are terrible compared to other operators.

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Permalink Reply by Henry on June 27, 2011 at 7:20

There may be a good number of these people on GHS.com, but only one responds to my survey.  So I only have that single data point.

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Permalink Reply by Skip Peel - Mineral Consultant on June 27, 2011 at 7:37

Post a request for data in their county groups.

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Permalink Reply by Henry on June 28, 2011 at 8:06

I can tell you that this person's price went from about 75 cents below the "cost-free price" when CHK had his lease.  In the month that NFR took over, his price went right up there to a price comparable to what those with cost-free royalties were getting, and it's stayed there ever since.

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