Replies to This Discussion

Permalink Reply by Wasilla1 on February 2, 2010 at 6:04

So here's my question: "When they drill in one section to extract from another section, is the section they are drilling considered held by production?" Example: They are drilling in Sec. 33 to go into and under Sec. 28. So will Sec. 33 be considered HBP?

Permalink Reply by Hobbs on February 2, 2010 at 14:17

Wasilla, if a well is drilled from a surface location in one section to a "take point" (the point where the wellbore enters and produces from the productive zone) in another section, only the leases in the unitized area that includes the take point will be held (except as noted below). While there are some units that are composed of more than one section, most Haynesville units consist of all acreage in a single section.

Therefore, in your example, if the unit for the well producing from a take point in Section 28 covers only Section 28, then only leases included in Section 28 are held. If a lease with acreage in Section 28 also includes acreage in another section (such as Section 33), the Section 33 acreage will also be HBP if the lease allows it. Most leases these days don't - they have Pugh Clauses, which cause all acreage outside producing units to expire at the end of the primary term of the lease. If a Pugh Clause is in the lease, a separate well would have to produce from a take point under Section 33 to hold the Section 33 acreage.

Bless somebody!

Permalink Reply by Robert L Harris on February 2, 2010 at 6:17

I have property in Southeast Quarter of Section 33 and haven't received any notices of drilling from Petrohawk, Thanks for the Pay Attention Notice

Permalink Reply by Harold Bennett on July 15, 2010 at 5:25

Anyone knows what's going on with the Orchard drilling?

Permalink Reply by Harold Bennett on July 15, 2010 at 5:27

Anyone knows what's going on with the Orchard drilling?