I'm very new at all this but I need to know if anyone can tell me about additional wells in our section. Will we receive royalities from all producing wells in our section? If not, how is it determined who gets paid and who doesn't? Any help is greatly appreciated.
Guess the thing that keeps us confused is people keep telling us as long as there are wells in our section (34) that we should be getting royalities from them, or some of them, anyway. From the info. I have gotten on this blog, we only get royalities if the well is drawing gas from our section and if it is not drawing from another section. Am I understanding that right? But, some of the units located near our unit, or section, may be draining gas from our section, but we do not get royalities from those either, right? Think this is the main concern of Charles.
People who tell you that you should get royalties from wells in your section are living in the past when the vast majority of all wells were vertical. It's disappointing to think that after two and a half years of Haynesville Shale development by horizontal wells that these people still don't get it. And that others believe what they say. Royalties are paid based on the location of perforations in the horizontal lateral. The surface location of the well pad means nothing. A lateral wellbore drilled to the regulations of the LA. Office of Conservation is not capable of producing from the adjoining section. This is shale and the gas it contains can not flow anywhere unless the formation is fractured. And the fracture can not extend for a distance greater than 330' from the wellbore. It is a physical impossibility for a wellbore located as to state regulations and located in another section to produce gas from you section.
Maybe this video will help you understand a little better.
Dot, a horizontal Haynesville Shale well has a very limitied drainage area (~80 acres) so a well located in an adjacent section would not produce (drain) gas from your section.
I have attached the wll plat for the Jimmy Woodward 27 H1 Well that shows how the lateral is located within Section 27 and is perforrated and only produces from that section even though the surface location is in Section 34.
One of the hands that was drilling a Petrohawk well in Red River Parish told me that a frac job going on in the adjacent section kicked on them and stuck the bit down hole. He said that it took them 2 weeks to get unstuck. He said the wells were communicating with each other.
I have not heard of any instances of well fracture communications so I would not think it is a wide spread occurrence. dot, not even an O&G attorney could likely find out if fracture zones were extending beyond their designed limits.
Skip this happened a good while back and I posted about it. There were 3 rigs in 3 adjoining sections, one fracing and two grilling and if I remember correctly both of the rigs that were drilling felt the communication.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More