As laterals get longer, completion costs go up especially with the volumes of water and proppant being used in new version wells. The question is how many wells will you be required to pay your way into. Most operators are pad drilling multiple unit wells.
I was told two wells. However, if I gave them a lease extension, I would receive production on three wells and not participate in any. Their current unit excludes a portion of my acres and they advised that if I did not extend the original lease covering all acreage, then they would exclude that tract of land from any producing unit. I know that they have leasehold interest in that acreage since family members have leased their interest to them.
How can I find out about production of wells in the area where I have the minerals.
If you post your location, I can check on the production. The closer you are to the CHK activity in Caddo and DeSoto the better you are.
Our minerals are in the Alford Johnson Survey A-360. The DUC well is the Herndon HV GU 3H. Rockcliff is the operator.
One of the brokers advised that the wells were doing 400 mcf per month, or 11mcf per day. If that were the case, the d/c costs would pay out in a timely fashion.
Those Herndon wells are being drilled now. Just to the east is an old well, T. Lynch Gas Unit #4H, lease ID #245634, that has made 1,939,625 mcf since Oct '08 and to the south is Brammer Pan #1H, lease ID #270452, that has made 3,266,519 mcf since July of '13. The first one was a Coronado Energy well that belongs to Covey Park now. The second one is the only HA well CHK still has in East Texas.
You should go look at pending production on DP # 832683, too. Sabine (742143) is the operator. This one is ~3.5 miles north of the Herndon wells. Nothing in between that's producing.
I suggest you hire a good oil and gas lawyer. It is not as expensive as many think. It is a cost that will easily pay for itself.
i was told they had not declared/filed their gas unit, but that it would not include all of our acreage unless we signed a lease extension. If we signed an extension, our acreage would share in all production in the unit. In Oklahoma, for acreage to share in production, it has to be in the geographical unit. Maybe not in Texas?