Replies to This Discussion

Permalink Reply by j garrett on December 6, 2009 at 5:47

The Hassell #2h & 3h both have rigs on them as of 12/5/09. Serious rigs. The #2h was setting surface casing 12/4. The #3h was stood up 12-4/12-5 and is the biggest rig I've seen, nearly 4 stories to the platform. EOG has built a huge man-made lake to gather water for the eventual frac jobs. Probably 4-5 ac lake 20-30 ft deep. They are serious about these wells.

Permalink Reply by jffree1 on December 6, 2009 at 15:21

If you see the rig names and numbers, make a note. Les B put up a page for Texas Drilling Rig Locations in the Drilling Rig Locations group. And those two aren't on the list.

Permalink Reply by RBH on December 7, 2009 at 7:46

CARTHAGE, N. (BOSSIER SHALE)
TRRC production reported for 10/2009:
HILL #1 282,674 mcf, HASSELL #1284,505 mcf, Pop-Pop #1 402,407 mcf

Permalink Reply by j garrett on December 7, 2009 at 16:47

Where did you find those numbers RBH? I can't find them on the RRC site.

Permalink Reply by RBH on December 7, 2009 at 17:09

J garrett:

http://webapps.rrc.state.tx.us/PR/publicQueriesMainAction.do

Production Report Queries
then
Production by Filing Operator =253162 =EOG RRC #=6 choose: Pending choose Month=10/2009

Permalink Reply by RBH on December 7, 2009 at 9:10

Collaborative Exploitation Project-Haynesville--with 14 operators --

Object Reservoir, Inc. is the provider of multiple collaborative projects for the delivery of best practices for the exploitation of Shale assets throughout North America.

Participants to these Collaborative Exploitation Projects submit and share production, completion, and well design data from several of their producing wells. This data is then studied by Object Reservoir using our unrivaled expertise, Dynamic Reservoir Characterization™ process and ground breaking Resolve™ technology to formulate a complete suite of well models and best practices, to generate real understanding of the best ways of monetizing shale assets.

The Collaborative Exploitation Projects are not academic studies and focus on the rapid generation of models and results. Shared with all participants such that they can begin using them as soon as they are produced. The best practices are provided and compiled concurrently to be delivered in a complete final report.

The best practices focus on:

•Optimal Strategies for data gathering.
•Completion Design.
•Stimulation.
•Well Spacing.
•Reserves Estimation (Partnered with leading Reserves auditor DeGolyer and MacNaughton), and best practices for turning resources into reserves.
•Workflows to accelerate the learning curve for optimal exploitation and monetization of operators’ acreage.
The first Collaborative Exploitation Project undertaken by Object Reservoir is for the Haynesville Shale and commenced on April 1st, 2009, with 14 leading operators whose holdings represent 67% of the leased acreage in the Haynesville, and is modeling over 70 horizontal wells.

Permalink Reply by j garrett on December 7, 2009 at 16:48

You should post this as a new discussion on the Main board.

Permalink Reply by Alamo on December 8, 2009 at 8:10

Those are 3 outstanding wells and are sure to generate drilling activity throughout the east side of Nacogdoches County and considerable enthusiasm throughout the entire area (Nacogdoches, San Agustine, Shelby, eastern Rusk and Panola Counties). That Carthage, North (Bossier Shale) Field continues to expand

With the note that the EPA is likely to start clamping down on power plant emissions and with greater utilization of NG to produce electricity along with the onset of cooler temperatures, the price structure should continue improving--all good news. Hope the emphasis on diminishing GHGs in the upcoming Copenhagen conference will move the US closer to CNG powered transportation.

Something I think all mineral interest owners should take note of even when you don't hold executive rights is to notify the person with the executive power (the family member that actually negotiates the lease) to do so with the other owners' rights in mind. Especially in East Texas we have the situation that much of the minerals are shared by other family members with one designated as having the right to negotiate the lease and collect whatever bonus money is tendered---in legal parlance that individual is said to have the "executive rights". So in the negotiations, the other mineral owners need to be thoroughly considered. If an executive rights holder opts for more up front bonus money at the expense of a greater royalty percentage, he has effectively deprived the other royalty owners of proceeds from their shared minerals. I call it "selling out" your family. What often happens is a total lack of communication between shared mineral interest holders until a less than optimum lease is signed, ie, a less-than-going royalty percentage retention and a no production cost clause, etc, and you (the executive rights holder) will forever be the "Blacksheep" that sold your family down the drain. For some strange reason many executive rights holders seem to think lease negotiations have to be conductd under the strictest confidentiality. The contrary is more often than not the truer situation. There's potentially a lot of difference between a cost free 1/4th ( 25 per cent) royalty and a 3/16ths (.1825) or a 1/5 (.20) without a "cost free" royalty clause. Bonus money has a way of evaporating fairly quickly and royalties and production costs can last for years.

More and more in East Texas and NW Louisiana so-called "E and P" companies can drop the "E" from that designation: they are simply "P"--production companies. when you have established a well drilling success ratio of 99.99 per cent the "Exploration" designation is superfluous. Texas Railroad statistics indicate that not one well drilled was declared a dry hole in Texas in the last reporting period. That's some record considering the thousands of wells drilled during that most recent year. Wells have quit producing and have been plugged, but NO dry holes! Keep that in mind when talking to a land man.


The moral here: contact other family members you share minerals with when you hold executive rights---those people just might have some ideas that will make things better for all of you.