WSJ: Tellurian Has Held Talks With Chesapeake Energy on Louisiana Fields - GoHaynesvilleShale.com2024-03-29T10:01:49Zhttps://gohaynesvilleshale.com/forum/topics/wsj-tellurian-has-held-talks-with-chesapeake-energy-on-louisiana?commentId=2117179%3AComment%3A3673069&feed=yes&xn_auth=noTellurian is not like other H…tag:gohaynesvilleshale.com,2018-03-10:2117179:Comment:36731922018-03-10T14:34:56.090ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>Tellurian is not like other Haynesville operating companies. They are not in the business of selling gas, they are in the business of sourcing their own gas. Since they will not be in a position to use their gas until 2022, it makes sense to maintain some level of cash flow from their Haynesville reserves to cover lease operating expenses. It is also possible that when they acquired the Samson units, they also assumed any gathering and treating minimum volume commitments. At some point…</p>
<p>Tellurian is not like other Haynesville operating companies. They are not in the business of selling gas, they are in the business of sourcing their own gas. Since they will not be in a position to use their gas until 2022, it makes sense to maintain some level of cash flow from their Haynesville reserves to cover lease operating expenses. It is also possible that when they acquired the Samson units, they also assumed any gathering and treating minimum volume commitments. At some point these old Samson units will reach a point of depletion where new wells will need to be placed on line just to maintain the leases. There are a number of potential reasons to drill some wells but no incentive to drill a lot of wells as that would not be supportive of the business plan Tellurian is selling to potential investors.</p> Thanks for the clarification,…tag:gohaynesvilleshale.com,2018-03-10:2117179:Comment:36730982018-03-10T04:40:49.378ZJesse Joynerhttps://gohaynesvilleshale.com/profile/JesseJoyner
<p><span style="font-size: 14pt;">Thanks for the clarification, Andrew. In the past, when new deep-pockets money comes to the table with a buy-in, I've seen similar "drill it" activity, even for those that are not known to be spudders. There seems to be a go-get-it macho attitude when such a company owns a drill-able leasehold. </span></p>
<p><span style="font-size: 14pt;">Thanks for the clarification, Andrew. In the past, when new deep-pockets money comes to the table with a buy-in, I've seen similar "drill it" activity, even for those that are not known to be spudders. There seems to be a go-get-it macho attitude when such a company owns a drill-able leasehold. </span></p> That's the one I was thinking…tag:gohaynesvilleshale.com,2018-03-10:2117179:Comment:36730422018-03-10T02:07:15.303ZAndrewhttps://gohaynesvilleshale.com/profile/Andrew358
<p>That's the one I was thinking of; I was mistaken when I said it was in Sabine Parish, and it is 4 new wells, not 5. Regardless, the application for 4 new wells indicates that they intend to drill. They may contract out operations, but I spoke to one of Tellurian's officers last fall when their acquisition was announced, and he swore up and down that Tellurian intends to operate its own wells. Time will tell if they intend to drill or not.</p>
<p>That's the one I was thinking of; I was mistaken when I said it was in Sabine Parish, and it is 4 new wells, not 5. Regardless, the application for 4 new wells indicates that they intend to drill. They may contract out operations, but I spoke to one of Tellurian's officers last fall when their acquisition was announced, and he swore up and down that Tellurian intends to operate its own wells. Time will tell if they intend to drill or not.</p> In addition to their alternat…tag:gohaynesvilleshale.com,2018-03-10:2117179:Comment:36730382018-03-10T01:59:41.752ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>In addition to their alternate unit wells in DeSoto Parish, Chemard Lake? Field Order 700-G-14.</p>
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<p>In addition to their alternate unit wells in DeSoto Parish, Chemard Lake? Field Order 700-G-14.</p>
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<p></p> Tellurian just applied for 5…tag:gohaynesvilleshale.com,2018-03-10:2117179:Comment:36732772018-03-10T01:43:23.739ZAndrewhttps://gohaynesvilleshale.com/profile/Andrew358
<p>Tellurian just applied for 5 new wells in a single unit in Sabine Parish. </p>
<p>Tellurian just applied for 5 new wells in a single unit in Sabine Parish. </p> Tellurian can hire an operati…tag:gohaynesvilleshale.com,2018-03-09:2117179:Comment:36730852018-03-09T22:41:54.225ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>Tellurian can hire an operating company. It is not widely recognized that all the Indigo companies (Minerals, Resources and Haynesville) have a contract operator managing the drilling of their wells. Then again, Tellurian may just create an in-house department to operate wells in their units when the time comes for them to take their gas instead of sell it.</p>
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<p>Tellurian can hire an operating company. It is not widely recognized that all the Indigo companies (Minerals, Resources and Haynesville) have a contract operator managing the drilling of their wells. Then again, Tellurian may just create an in-house department to operate wells in their units when the time comes for them to take their gas instead of sell it.</p>
<p></p> The leases already exist. Th…tag:gohaynesvilleshale.com,2018-03-09:2117179:Comment:36730192018-03-09T19:27:45.994ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>The leases already exist. The statement to which you refer is for each individual lessor in these units to answer for themselves. If they have a no cost royalty that is currently being honored, then maybe Tellurian will honor it also. If a lessor does not have a no cost royalty or one that is not properly written to stand up in court, they will be subject to whatever post production charges Tellurian imposes. All that is knowable at this point is that Tellurian is touting a $2.25 all in…</p>
<p>The leases already exist. The statement to which you refer is for each individual lessor in these units to answer for themselves. If they have a no cost royalty that is currently being honored, then maybe Tellurian will honor it also. If a lessor does not have a no cost royalty or one that is not properly written to stand up in court, they will be subject to whatever post production charges Tellurian imposes. All that is knowable at this point is that Tellurian is touting a $2.25 all in cost to the cryogenic units as their cost before liquifaction.</p>
<p></p> <<<Will Tellurian de…tag:gohaynesvilleshale.com,2018-03-09:2117179:Comment:36731652018-03-09T19:13:39.041ZBob Zimmermanhttps://gohaynesvilleshale.com/profile/BobZimmerman
<p><<<Will Tellurian deduct post production costs from $2.25?>>></p>
<p>As you indicated last week, post-production cost assessment is dependent on the terms of lease. </p>
<p><<<Will Tellurian deduct post production costs from $2.25?>>></p>
<p>As you indicated last week, post-production cost assessment is dependent on the terms of lease. </p> That is because the gas is be…tag:gohaynesvilleshale.com,2018-03-09:2117179:Comment:36730692018-03-09T18:34:32.479ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>That is because the gas is being sold, not used to make LNG. The Tellurian LNG facility will not be completed and capable of exports until 2022. Once operations begin, the gas will not be sold on the open market.</p>
<p>It may very well be that losing Chesapeake and getting Tellurian as your operator will be like going from the frying pan into the fire.</p>
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<p>That is because the gas is being sold, not used to make LNG. The Tellurian LNG facility will not be completed and capable of exports until 2022. Once operations begin, the gas will not be sold on the open market.</p>
<p>It may very well be that losing Chesapeake and getting Tellurian as your operator will be like going from the frying pan into the fire.</p>
<p></p> My first gas payment from tel…tag:gohaynesvilleshale.com,2018-03-09:2117179:Comment:36730102018-03-09T18:09:55.140Zolddog573https://gohaynesvilleshale.com/profile/olddog573
<p>My first gas payment from tellerian was equivalent to what indigo paid me for the same month of production </p>
<p>My first gas payment from tellerian was equivalent to what indigo paid me for the same month of production </p>