I don't know the details like I should, but land man named James Taylor is taking leases halfway between Blanchard and Longwood on Blanchard Furrh Rd. 1,250 per acre and 22.5 royalty. Said this is an upstart company anxious to drill. Best news I've had in a while so I thought I'd share to see if any one else is getting offers.
There are several companies that are indicating an interest in that general area between I-20 and Longwood. Comstock has applied for six long lateral Haynesville wells in Section 26 & 35 - 18N -16W. Nadel & Gussman has applied for similar wells just south of the west end of Cross Lake. The July mineral auction included two large tracts covering the mid-lake and west end parts of Cross Lake. This is all early stage development signals. Now we need to see if wells similar to those near the town of Greenwood can be drilled a little further north.
Sharon the name of the landman doesn't help us much. What would be of value is to know the name of the company offering the leases and, if possible, who they are representing. And the "upstart" company anxious to drill. Since there are no new version Haynesville wells that far north, the offer is reasonably "in the ball park" of what I would expect.
has anybody been asked to sign non disclosure agreements on terms of leases? seems sharon was not one of them.
I know not signing any more leases without a firm 3 year term. Not interested in waiting decades to see if maybe get well on the leases.
Either agree to drill within that term or go away.
Good for you! Best wishes for a big producer!
Comstock and Blue Dome are drilling in the Greenwood-Waskom Field now so both would be a possibility. I think Blue Dome may be a Joint Venture with Nadel & Gussman as operator. Ensight IV would be another possibility but I've seen nothing from them that far north. A lot of us would like to see a new version well as far north as S8-18N-15W. That is getting into an area of higher clay content that thwarted companies drilling the early Haynesville horizontal wells.
I've not run across a lot of non-disclosure lease clauses in my career. The fact that lessees are no longer required to record a full lease in the public record may have had something to do with that. Lessees do regularly record a memorandum of lease with the property description and the term of the lease. I don't have a problem with three year lease with a two year option to extend. Or, to a four year lease term. The age of unconventional reservoirs has caused the industry to be more careful with short term leases. The Haynesville Shale play taught a number of companies first hand the potential problems with three year lease terms when the play area expanded and they had leased far more acres than they could comfortably drill time and budget wise.
There have been some over the top leasing programs that IMO are outside of the realm of what is reasonable. During the Lower Smackover/Brown Dense play many land owners agreed to leases with a four year lease term and a four year option to extend. Of course the vast majority of those leases expired without the extension option being exercised.
Yep, Memorandum of lease.
Skip, as we talked about before, when discussing a deep directional well Blue Dome was drilling near Cross Lake, Comstock and Ensight are both drilling 2 more directional wells that are permitted to 20,000 feet plus right now close to Interstate 20 and the Texas/Louisiana line. We own no minerals in LA but I keep wondering about these deeper directional wells. Don't worry, I know it is not "deep oil":). Kathy
What in particular do you wonder about those wells, Kathy?
As you know Skip, "I know nuttin":) but I wonder why these companies are drilling deeper directional wells in these proven Haynesville areas. I am just basing this on the fact that most of the early Haynesville wells were vertical wells to the Haynesville formation. It appears all of these directional wells are being drilled in Louisiana near the Texas border close to Harrison and Panola County. A friend of ours is doing contract work for Comstock and he said Jerry Jones has put a lot of money in the company over the last year but he does not know anything about these wells.
The wells to which you refer are just horizontal Haynesville wells (Carthage Field in your part of Texas). The increase in interest in your part of E TX is owing to the new well designs that make the wells more profitable and the fact that there are a number of new companies with aggressive drilling programs.
Keep in mind that there is no such thing as an economic vertical Haynesville Shale well. The Haynesville formation varies in lithology across it's arc from central Texas to the panhandle of Florida. In some locations the Haynesville is sand and in some it is shale. For purposes of drilling economic wells, one or the other but not both. Where the Haynesville is sand (and contains commercial volumes of hydrocarbons), vertical wells are capable of producing profitable volumes of liquids and/or gas. There are many hundreds of long lived, shallow decline vertical Haynesville wells in parts of N LA. They are sand wells and many miles removed from the shale portion of the Haynesville shale fairway. The Haynesville sand is a conventional reservoir. The Haynesville shale is an unconventional reservoir.
The Comstock wells drilled just south and north of Greenwood, LA that we have discussed have revived interest in this region because the new well designs have improved the volume of recoverable gas and driven down the cost per mcf to produce it. Companies can make a reasonable return of their investment.