Was contacted today about signing for a 3D seismic shoot. I am leased. Was offered $15 per acre plus any damages. He said that was standard price everyone was being offered unless the lease stipulated different. My lease Exhibit “A” has the following statement: “No seismic survey shall be conducted on the lease premises without further permission of the Lessor, which permission shalll be subject to further requirements”. There is a water well testing clause, but in my case that is n/a.
Not looking to hold out, just want to make sure I’m getting a fair offer. Anyone care to elaborate on my position (lease language), anything I may need in the seismic contract, and what is a fair rate.
Ran out of reply options for your Whittington well comments.
Difficult to answer your questions in this manner since it is not a simplistic situation.
First off, you need to have the reservoir (rock) charged with significant volumes of O&G to be able to produce - either with or without frac stimulation depending on the reservoir.
The Wilcox sands in this well (and most wells in this play in La) are "wet" with no significant O&G presence. When this play does work, it is normally 1-2 individual sands with 10' to 50' of total O&G pay that does not need to be frac stimulated.
Plays like the AC, TMS, Eagle Ford, Haynesville, Marcellus, Permian Basin have thick (50' to several hundred feet) reservoir sections of O&G charged section (silts, mudstones, carbonates, fine grained sands) which can not be produced because the reservoir / rock is "tite", i.e. the permeability is too low to allow for O&G molecules to move from the rock into a wellbore. This is why horizontals are drilled and then frac'd - to open up as much section as possible and then rubble-ize it with frac job.
The AC is a carbonate (technically a Limestone) - this will have various degrees of brittleness which makes it optimum for frac stimulation. Key for the AC is to have sufficient porosity to contain O&G in the matrix rock that can be released by frac stimulation approach.
No porosity in AC will equal no chance of making a decent completion. Cannot get blood from a turnip.
PS - note that all these "shale plays" are not really shales - they are a mix of other lithologies / all of which have their own characteristics as to porosity, perm, brittleness, etc. As well as organic content and a thermal history that has generated O&G.
Thank you RM for taking your time to answer my questions.
I guess all this activity just gets us all excited about the possibilities of what can be. Also reliving the past. My dad who passed away almost 11 years ago was so excited & followed the 90's drilling boom & would take me driving around to all the well locations. Ah the memories! He was leased to Chesapeake for 5 years, up until 2000 & now I have the land & rights for 66 acres of the 76 he had. Sure miss him, he would love this. Guess that is where I get it.
Thanks for the info two dogs. I am glad to hear Torrent has the capability that you said. That is good. That is very interesting that halcon was considering my area. Too bad the bottom fell out first. Would love to see some action there.
Lisa, D&D Drilling is the drilling contractor. Magnum Producing is the well operator. And the well s/n is 251222.
M283 MAGNUM PRODUCING, L.P.
Is Magnum Producing a big fry or not? Or are the a sub contractor of one of the bigger guys. Not much on them out there. Nothing seems to be updated yet on the status of this well on Sonris. And if this is a Wilcox only well up to 7000' and only a prescription well not much will be learned about AC. We have been hearing from time to time what seems like booms but that could be Fort Polk too. I have not seen any Seismic contractors in my area.
Small fry. They are drilling this prescription well for whomever owns the mineral servitude or existing lease rights. The Gordon Holdings well is only permitted to 7000' so it will not test the AC. By the time SONRIS is updated the rig will be long gone and there will likely be a work order to plug and abandon the well. The legal reason for the well will have been fulfilled.
Gotcha! Protecting lease interest.
The whole O&G effort can be very intoxicating for land and mineral owners when you are in those areas of activity. Best word to all is "patience". Things move slowly in the oil patch.
And new rumors make the rounds every day. Hint: the vast majority are misleading at best and the rest are just not true at all. That's where GHS and the Internet come in.
Thanks RM! You have helped me understand alot of the process. At least I'm in a good area AC-Masters Creek Field & TMS.