Shelby County lease bonus and royalty. - GoHaynesvilleShale.com2024-03-28T15:34:00Zhttps://gohaynesvilleshale.com/forum/topics/shelby-county-lease-bonus-and-royalty?groupUrl=shelbycounty&commentId=2117179%3AComment%3A3989133&xg_source=activity&groupId=2117179%3AGroup%3A73517&feed=yes&xn_auth=noThank you for your replies, R…tag:gohaynesvilleshale.com,2021-09-27:2117179:Comment:39973352021-09-27T22:37:33.616Zshelbycohttps://gohaynesvilleshale.com/profile/Preston
<p>Thank you for your replies, Rock Man and Skip Peel. Because of my background, I have a decent handle on "math" end of things, I just don't know much about the business considerations for operators.I was mainly trying to get a handle on roughly what sort of initial production a company would like to see to make a $7.2M well economically feasible, acknowledging that variables like gas prices and NRI certainty make this a moving target. I have 10+ small interests in N and NW Shelby County…</p>
<p>Thank you for your replies, Rock Man and Skip Peel. Because of my background, I have a decent handle on "math" end of things, I just don't know much about the business considerations for operators.I was mainly trying to get a handle on roughly what sort of initial production a company would like to see to make a $7.2M well economically feasible, acknowledging that variables like gas prices and NRI certainty make this a moving target. I have 10+ small interests in N and NW Shelby County (none in shale), so that's the primary reason for my interest.I looks like prices would likely need to increase a good bit more before a well like the one I mentioned above would project the sort of payout that would likely interest the typical operator. Thanks again!</p> In addition to the price of a…tag:gohaynesvilleshale.com,2021-09-21:2117179:Comment:39964772021-09-21T22:38:51.409ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>In addition to the price of an mcf, the Net Revenue Interest (NRI) is important to calculating payout. Currently a lot of new drills on recent leases provide NRI's in excess of 75%. Throughout the early Haynesville, NRI's were often less than 75% and in some cases, considerably less.</p>
<p>If all leases in a drilling unit are a quarter royalty, the operator's NRI would be 75%. Pay out 25% in royalties and net 75%.</p>
<p></p>
<p>In addition to the price of an mcf, the Net Revenue Interest (NRI) is important to calculating payout. Currently a lot of new drills on recent leases provide NRI's in excess of 75%. Throughout the early Haynesville, NRI's were often less than 75% and in some cases, considerably less.</p>
<p>If all leases in a drilling unit are a quarter royalty, the operator's NRI would be 75%. Pay out 25% in royalties and net 75%.</p>
<p></p> HV wells that start off at 20…tag:gohaynesvilleshale.com,2021-09-21:2117179:Comment:39964762021-09-21T22:31:45.188ZRock Manhttps://gohaynesvilleshale.com/profile/MarkP
<p>HV wells that start off at 20+ MMCF per day will be paying out in about a year. Obviously varies with gas pricing</p>
<p>HV wells that start off at 20+ MMCF per day will be paying out in about a year. Obviously varies with gas pricing</p> I don't doubt that. What is t…tag:gohaynesvilleshale.com,2021-09-20:2117179:Comment:39961502021-09-20T23:42:31.926Zshelbycohttps://gohaynesvilleshale.com/profile/Preston
<p>I don't doubt that. What is the typical goal for breaking even on these types of wells (timing-wise)? </p>
<p>I don't doubt that. What is the typical goal for breaking even on these types of wells (timing-wise)? </p> With costs that high, 6-7 BCF…tag:gohaynesvilleshale.com,2021-09-20:2117179:Comment:39961442021-09-20T22:19:59.207ZRock Manhttps://gohaynesvilleshale.com/profile/MarkP
<p>With costs that high, 6-7 BCF probably marginal economics</p>
<p>With costs that high, 6-7 BCF probably marginal economics</p> I would expect the Drilling a…tag:gohaynesvilleshale.com,2021-09-20:2117179:Comment:39960452021-09-20T22:14:07.498ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>I would expect the Drilling and Completion costs for this well, baring any unforeseen problems, to be in the neighborhood of what Goodrich stated in their corporate presentation today for their 4600' Haynesville laterals: ~$7.2 million.</p>
<p></p>
<p>I would expect the Drilling and Completion costs for this well, baring any unforeseen problems, to be in the neighborhood of what Goodrich stated in their corporate presentation today for their 4600' Haynesville laterals: ~$7.2 million.</p>
<p></p> Dug up the info on this Eagl…tag:gohaynesvilleshale.com,2021-09-20:2117179:Comment:39962742021-09-20T22:07:07.327ZRock Manhttps://gohaynesvilleshale.com/profile/MarkP
<p>Dug up the info on this Eagle O&G well. Definitely CVS target zone - about 1000' above the Haynesville Shale.</p>
<p>Although IP was only 2 MMF per (with 3000+ BW per day), this well max'd out at about 5 MMCFPD in its best month.</p>
<p>I have attached production curve and EUR projection from ENVERUS - may make u to 6+ BCF in time if no mechanical problems.</p>
<p>The fact that Eagle O&G has not followed up with any additional HZ's in this area may point to some economic issues (no…</p>
<p>Dug up the info on this Eagle O&G well. Definitely CVS target zone - about 1000' above the Haynesville Shale.</p>
<p>Although IP was only 2 MMF per (with 3000+ BW per day), this well max'd out at about 5 MMCFPD in its best month.</p>
<p>I have attached production curve and EUR projection from ENVERUS - may make u to 6+ BCF in time if no mechanical problems.</p>
<p>The fact that Eagle O&G has not followed up with any additional HZ's in this area may point to some economic issues (no idea what the D&C would be to drill and frac 5000' laterals like this one).</p> It is possible that this well…tag:gohaynesvilleshale.com,2021-09-20:2117179:Comment:39962682021-09-20T21:40:55.044ZRock Manhttps://gohaynesvilleshale.com/profile/MarkP
<p>It is possible that this well may drum up some interests in that part of the trend for shallower Cotton Valley Sand, but that section will never come close to being as good as the HV shale with its 20+ MMCF per day rates and massive EUR's.</p>
<p>Just my opinion</p>
<p>.</p>
<p>It is possible that this well may drum up some interests in that part of the trend for shallower Cotton Valley Sand, but that section will never come close to being as good as the HV shale with its 20+ MMCF per day rates and massive EUR's.</p>
<p>Just my opinion</p>
<p>.</p> I am just guessing but this i…tag:gohaynesvilleshale.com,2021-09-20:2117179:Comment:39962642021-09-20T21:37:40.797Zshelbycohttps://gohaynesvilleshale.com/profile/Preston
<p>I am just guessing but this interest could possibly be related to the Eagle O&G/Dance-Sample CV horizontal well which is approximately five miles south of Tenaha. This well went into production in January, 2018 and has done pretty well. The numbers would look even better at the current higher prices. </p>
<p>I am just guessing but this interest could possibly be related to the Eagle O&G/Dance-Sample CV horizontal well which is approximately five miles south of Tenaha. This well went into production in January, 2018 and has done pretty well. The numbers would look even better at the current higher prices. </p> To some extent I think the up…tag:gohaynesvilleshale.com,2021-07-24:2117179:Comment:39892542021-07-24T14:19:09.275ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>To some extent I think the uptick in leasing interest and mineral purchase offers in Shelby County is associated with the arrival of Aethon. Aethon has been the most aggressive driller across the entire Haynesville Shale Fairway, LA and TX. Although Legacy Reserves was the first company drilling Shelby rock after a long dry spell, the arrival of a Haynesville-directed Aethon rig in mid-June likely upped the interest.</p>
<p>The rig locations can be followed by keeping up with my…</p>
<p>To some extent I think the uptick in leasing interest and mineral purchase offers in Shelby County is associated with the arrival of Aethon. Aethon has been the most aggressive driller across the entire Haynesville Shale Fairway, LA and TX. Although Legacy Reserves was the first company drilling Shelby rock after a long dry spell, the arrival of a Haynesville-directed Aethon rig in mid-June likely upped the interest.</p>
<p>The rig locations can be followed by keeping up with my discussion,</p>
<h3><a rel="nofollow" href="https://gohaynesvilleshale.com/forum/topics/eieicbice112021" target="_self">HAYNESVILLE RIG COUNT BY PARISH/COUNTY AND OPERATOR</a> , on the Main Page w<span style="font-size: 10pt;">hich I update each week.</span></h3>
<p></p>