Replies to This Discussion

Permalink Reply by Kenny Holloway on August 28, 2018 at 9:02

Gotta love spell check- should be unleased interest!

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Permalink Reply by Skip Peel - Mineral Consultant on August 28, 2018 at 14:19

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.

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Permalink Reply by Kenny Holloway on August 28, 2018 at 16:24

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.

Thanks!

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Permalink Reply by Kenny Holloway on August 29, 2018 at 14:54

Our minerals are in the Alford Johnson Survey A-360.  The DUC well is the Herndon HV GU 3H.  Rockcliff is the operator.

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Permalink Reply by Kenny Holloway on August 29, 2018 at 15:01

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.

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Permalink Reply by jffree1 on August 29, 2018 at 15:13

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.

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Permalink Reply by jffree1 on August 29, 2018 at 15:24

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.

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Permalink Reply by Martin on August 29, 2018 at 7:25

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.

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Permalink Reply by Bob Zimmerman on August 29, 2018 at 6:59

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Those should be geographic units, consequently the exclusion mentioned above cannot be done. They know that, and they know you don't.

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Permalink Reply by Kenny Holloway on August 29, 2018 at 14:58

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?

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