Replies to This Discussion

Permalink Reply by Spring Branch,mineral owner on March 22, 2010 at 11:46

The way that works, Bacon is this: I want them to drill 8 wells in my section .....................but not your section!

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Permalink Reply by Bacon on March 22, 2010 at 12:30

Yeah, yeah, that was the first time I've seen them ask for 7 alt wells at once though. Sure looks purty.

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Permalink Reply by Bacon on March 22, 2010 at 12:33

SB, Haha, just don't let them all be verticals!

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Permalink Reply by Spring Branch,mineral owner on March 23, 2010 at 4:00

Heaven forbid!

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Permalink Reply by FXEF on March 22, 2010 at 12:20

I don't want to be negative, but when all this gas is turned to sales, I can't see who's going to use it. Greater supply than demand, not to mention all the LGN that is being imported.

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Permalink Reply by Glenn Taylor on March 22, 2010 at 12:49

Then we have to be as smart as the Arab countries with their oil......control the output and control the price.

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Permalink Reply by Parkdota on March 22, 2010 at 16:26

Bacon, we got the same application from Encana in our sec 4 & sec 9 - 14n 14w Desoto Parish. They are requesting application for 8 new wells (1st well was W/E lateral test) in one and 7 in the other. I posted on the Desoto Parish page to see if anyone else had received a similar letter so I'm glad you posted on here. I see you're in Red River. I'm guessing we might be getting a pilot program in our sections. Have you heard of this or think that they might be doing the same in yours? Are there any pipelines running directly through your property? Is the land have ease of access and transportation? By looking at a map it appears as if you are also directly east of us which leads to my theory that they are targeting pilot programs where they drill all wells in accordance to the 2014 completed pipeline that runs from TX to GA which will run directly through our property and I'm assuming through or very near yours.

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Permalink Reply by Parkdota on March 22, 2010 at 17:06

I know they eventually drill in 80ac units but I have a theory that the pilot programs/projects will be based on productivity along with location, pipelines, access, cost of entry, etc. I'm trying to gather information from people about applications to test my theory. I've only heard of one similar applicant as mine that was also Encana and it is Bacon's who sits directly in the proposed path of the pipeline going through our property as well.

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Permalink Reply by Bacon on March 22, 2010 at 22:03

Park, Yes, that section is between the Centerpoint, Tiger and Gulf South lines. And it is right off of Hwy. 1. I would say that Alt well apps don't always translate to drilled wells. At least not very quickly. I like that theory though.

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Permalink Reply by Les Bamburg on March 23, 2010 at 3:07

Parkdota, just to clarify - they will eventually drill on 80 acre spacing as the unit will continue to be 640 acres.

Also, as Bacon stated, these notices requesting multiple well locations in the unit are not well permits. An operator will get that step done first but it may be some time before the actual well permits and drilling occurs. To date only EOG has truly embarked on a mutiple well per unit program and that may only be for a couple of units.

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Permalink Reply by Spring Branch,mineral owner on March 23, 2010 at 4:08

Les, it looks to me that Exco is doing a little of the Alternate unit thing, but not to the extent that EOG is. They are proposing 4 alternate unit wells in the Sections to go along with the Unit well, making a total of 5 wells in the Section. 14/12, Section 28 would be an example of this. It will be interesting to watch. Some Operators have to drill like mad just get one well in each of their sections (CHK), while other Operators such as EOG and Exco have their Sections pretty much HBP'd.

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Permalink Reply by Parkdota on March 23, 2010 at 5:18

Les, I'm hoping that we're one of the lucky few. Along with ease of access, water, N/S pipeline, E/W pipeline, low mineral acquisition costs (we signed before 2008 boom), and selling 60 ac for a processing plant (or whatever they call it) off our property that adjoins the hwy I can only guess that maybe we'll be lucky enough for them to go ahead with more wells be it 2, 3, or 4 years time. I know they don't have to do anything any time soon but these mentioned factors give us hope. :)

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