Replies to This Discussion

Permalink Reply by Two Dogs, Pirate on July 1, 2011 at 4:07

I hope it is also, good luck.

Permalink Reply by William C. Morrison on July 1, 2011 at 4:40

The permit is for a depth of 24,300, pretty deep well.  The Austin Chalk is not that deep.  My guess is they are looking for the Tuscaloosa Trend and deep gas.

 

Chip

Permalink Reply by WHuguet on July 1, 2011 at 5:00

Thanks ShaleGeo,

 

Wow, a 7k ft horizontal!

Permalink Reply by Clyde T. Williams on July 1, 2011 at 9:37

ShaleGeo

Thanks for the permit paperwork

 

Note the Permit requires WEEKLY updates for the well but I tried the link but so far no such page.  The only thing that came up for Well Status Reports was a blank spreadsheet at page

http://dnr.louisiana.gov/assets/docs/mineral/howto/fm_reportspreads...

FINALLY -  The weekly progress reports are given in form at

http://dnr.louisiana.gov/index.cfm?md=pagebuilder&tmp=home&...

 

The long verticals, horizontals, and "total" may be for lots of exploration then they can cut back

 

No indicators as to well development, jetting, fracking, or even shooting = exploration????

Thanks - Tom

 

Permalink Reply by William C. Morrison on July 1, 2011 at 5:45

Great.  Sounds like a very long lateral/horizontal well.  Interesting.

Permalink Reply by Abington on July 1, 2011 at 17:37

An oil service man who services both locations told me the local rumor in the area near Turner Bayou is that the Andarko well area is expected to be a better producer than the area drilled by Pryme. Then he said, "at least until the next sweet spot comes along"

Permalink Reply by William C. Morrison on July 2, 2011 at 1:13

Yes, a better distribution for the well not necessarily for the land owner.  It means fewer wells on his/her land and thus less distribution for him.  The exploration/producer likes it as it is fewer wells to drill, etc.

Permalink Reply by Madman on July 22, 2011 at 3:19

I am a property owner in this unit and all your comments are very encouraging.  My understanding is the horizontal is already set to begin as they have made it the to projected depth.  As this is my first rodeo, could I ask a few questions? 

If the first well is successful, what is the likelihood of additional wells coming on line?  If that happens, how does that affect the payout of the wells?

This is my first experience with leasing, so obviously very interested in your comments. 

Lastly, is there an average royalty per acre paid on a well similar to the ones Pryme has already drilled?  Im probably not asking the question properly, but just thought someone might have insight as to what a landowner could expect for each acre of land within the unit.

 

Thanks for any thoughts on this subject. 

Permalink Reply by WHuguet on July 22, 2011 at 4:36

Are you a Dominique heir?  If so, you were fortunate to get that well drilled with 6 months to spare on your servitude, especially with the lack of drilling out there. 

I've heard that if successful, they will drill another well in that unit, but that is just hearsay. I'm hoping they jump a half mile or more West!

Don't know on projected royalty per acre.  I would think that for a well to be considered successful would be at least 10 mil gross, but probably more like 15 to 20 mil (my speculation).  At least half of the production on most horizontals comes in the first year or two, so you can start putting pencil to paper.  To figure out about how much of each dollar in production you will get (rough), take Your acreage / Unit Acreage x lessor's royalty for a number.  If you have 500 acres in 1,000 acre unit at a 1/5 royalty, you will receive approximately 10% of every dollar the well produces (aside from deductions and severance tax).   Also, when the well comes on-line, you can get the estimated and reported barrels of oil produced per day and do some rough calculations based on that.   

Hope this helps and good luck!

Permalink Reply by Madman on July 22, 2011 at 11:39

Thanks for the information.  No, not a Dominique heir, just a long-time landowner with approximately 50 acres.  And glad to finally see some activity.  Thanks again.

Permalink Reply by Clyde T. Williams on July 22, 2011 at 12:18

SORRY - Maybe this is just a simple question

I presume that owners/leasors get a fee per acre and signing bonus if needed

Are royalties just on total production and prices paid??

Is there any fee/royalties on each well or just the production??

Most wells decline with age just like me and some of my friends

Is there any fees for reworking, re-stimulating/re-fracking/re-jetting, or redrill or new lateral well drilling ???

If the first well is a good producer is there any additional fees if they drill another horizontal segment - or is that just expressed in the royalties on total flow??

Is there any fees for injection of produced water into the producing and/or disposal zones??

 

Thanks Tom

 

Permalink Reply by BirdDawg, plain ole' idiot on July 22, 2011 at 12:51

Clyde, no that is not a simple question(s).

Basically mineral owners get a signing bonus and then receive royalties on any production. No additional signing bonus for subsequent wells in the same unit. After the first well your lease is held by production. But you then receive royalties on any addition alternate wells in your unit. The rest of your questions I will leave to someone else.

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