Replies to This Discussion

Permalink Reply by obed w odom on July 10, 2011 at 2:43

Tony, the northern edge of the new proposed unit looks to be about 1 mile south and 2 miles west of the J-W Union Co. unit in Section 32 T19S R17W.

Permalink Reply by Karen Jones on July 9, 2011 at 20:33

Anything happening in section 6 T22n r5w?

Permalink Reply by obed w odom on July 10, 2011 at 2:50

Karen, not that I have heard, but as you know section 6 T22N R5W is less than 6 miles directly south of the new unit, which might mean it would still be in the area of interest. Is your property leased?

Permalink Reply by Karen Jones on July 15, 2011 at 2:42

We don't think it's leased.

Permalink Reply by obed w odom on July 29, 2011 at 3:47

As you may have seen elsewhere on GHS, Southwestern Energy (SWN) has revealed themselves as the E&P company behind T. S. Dudley. They also say that a Claiborne Parish well (presumably the above one) will be the second one they drill. It will have a vertical depth of 10,700 feet and a lateral of 6000 feet, and is expected to be drilled later this year.

 

Here is a link to Southwestern's news release, kindly provided by "bpm" on another discussion group at GHS:

http://www.swn.com/investors/Press_Releases/2011/2Q%202011%20Earnin...

 

Good luck to us all!

Permalink Reply by Colquitt Charlie on August 19, 2011 at 6:12

Question re: lease rights to the Brown Dense.

 

If the Brown Dense is the source rock for the Smackover formation that has long been a "workhorse" in North Lousiana for decades - and is below the Smackover formation, I'm curious about whether the rights to the Brown Dense - in general, for the "typical" lease with Pugh clauses, etc. are generally unleased across the area OR held by existing Smackover production. 

 

 

Permalink Reply by Skip Peel - Mineral Consultant on August 19, 2011 at 6:45

The "standard" vertical Push clause allows the lessee to retain develop rights to the deepest depth drilled or produced (wording varies, obviously "produced" is the better version for mineral owners) plus 100'.  After the end of the primary lease term, all depths below that depth would be released (not, re-leased).  There are a lot of existing leases in the general area of the state line that do not contain a vertical depth clause.

Permalink Reply by Colquitt Charlie on August 19, 2011 at 6:58

yes - that's consistent with my understanding (100 ft below).  so - given the widespread Smackover production covering several parishes, and the fact that the Brown Dense is likely more than 100' below the Smackover, isnt' it reasonable to assume that much of it - even below existing Smackover production - is unleased at present?

Permalink Reply by Skip Peel - Mineral Consultant on August 19, 2011 at 7:04

IMO, it is not reasonable to assume that much is unleased for the following reasons:  Much of the area is HBP (Held By Production) on old leases with no depth limiting clauses (it doesn't matter whether the wells holding the leases are SMK or not), and many lessees' standard lease forms do not contain a depth clause, the lessor must have one included in the Exhibit "A" to the lease.  Some significant number of new lessors likely just signed what was offered.

Permalink Reply by Colquitt Charlie on August 23, 2011 at 3:58

Southwestern Energy's web page has excellent one-page summary on Brown Dense (with map - albeit small)

Permalink Reply by Colquitt Charlie on August 28, 2011 at 4:53

follow-up question re: Pugh clause.

 

Say a well is drilled and completed at 10,000 ft.  With a standard Pugh clause, rights would be then held to 10,100.

 

Say the well produces several years at the original zone, and is then recompleted up the hole - say to 8000 ft.   Are the rights still held to 10,100 OR only to 8,100?

Permalink Reply by Skip Peel - Mineral Consultant on August 28, 2011 at 5:08

Depends on the specific language in the depth clause.  Most standard forms of a vertical Pugh clause use the wording, "at the end of the primary term", or something similar.  In other words it's not "continuing production" but "production at the date the primary term expires" that triggers the specific depth defined by the clause.  Of course continued production at a shallower depth interval would be required to maintain the lease in force.

• ‹ Previous
• 1
• 2
• 3
• …
• 8
• Next ›
• Page