Replies to This Discussion

Permalink Reply by Crunchy on November 20, 2009 at 4:33

How many horizontals can be run? Is it still just the eight or would it double to 16?

Permalink Reply by Les Bamburg on November 23, 2009 at 17:30

Crunchy, I would say in some areas you could eventually see 16 horizontal wells per section (8 Haynesville Shale & 8 Mid-Bossier Shale).

Permalink Reply by drilltheshale on November 27, 2009 at 8:29

Interesting. Looks children and grandchildren may be spending some of the royalties.

Permalink Reply by GEORGE D BROCKNER on November 20, 2009 at 4:47

Thanks Jay. I'm hoping this will be fairly common in No. LA. I'm guessing this could be lucrative for the landowners.

Permalink Reply by VSC DeSoto South on November 20, 2009 at 9:40

That's what I'm thinking.

Permalink Reply by drilltheshale on November 30, 2009 at 10:33

Just a question from a non-professional. If your lease is coming due and you now realize your property is over not one but two significant shale formations, does that influence lease negotiations as to bonus or T&C's of the lease? Again, this is from the uninitiated so be gentle. lol

Permalink Reply by drilltheshale on December 8, 2009 at 8:23

I guess not then.

Permalink Reply by Skip Peel - Mineral Consultant on December 8, 2009 at 8:42

There's not much to offer at this point, drill. If you were to have one or more good producing horizontal Bossier wells in the vicinity of your minerals that would increase their value. The current situation is that the potential of the Bossier is recognized but not established as to EUR or aerial extent. It is of much greater value to know the Haynesville drilling unts/sections in the proximity of your minerals along with all HA depth wells permitted, drilling and completed. There are no lease clauses that come to mind that would be beneficial for the Bossier as it is shallower than the Haynesville.

Permalink Reply by drilltheshale on December 8, 2009 at 9:31

Gotcha, thanks.

Permalink Reply by drilltheshale on December 10, 2009 at 16:33

As our lease is looking like it will expire we may just exclude mid-Bossier from re-lease unless favorable terms.

Permalink Reply by Skip Peel - Mineral Consultant on December 10, 2009 at 18:02

That'll be tough since the Bossier is shallower than the Haynesville. In other words a standard vertical Pugh clause allows the lessee to retain the rights to all formations above the deepest formation produced plus 100' after expiration of the primary lease term. You can always ask for an exemption of the Bossier but unless you own thousands of acres of minerals your chances of getting that exemption are close to nill. And without completed and producing Bossier wells in close proximity to your minerals, you have about the same odds of getting a higher offer based on Bossier production. Don't bet on your lease expiring until you are within 30 days of the expiration date. With rigs readily available an operator can permit and spud in a relatively short time span.

Permalink Reply by dale helm on December 11, 2009 at 9:50

I have heard rumors that a lessee may drill a vertical inexpensive well solely in order to hold the lease. Is this likely or common? WE have a small interest 18-12-12 Desoto parish. Our lease expires in early may 2010.

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