Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on July 29, 2011 at 10:28

The first well drilled in a unit is "the unit well".  All subsequent wells drilled are "alternate unit wells".  Alt-1 is the second and Alt-2 would be the third well drilled in the same unit.

Permalink Reply by Teresa on July 29, 2011 at 16:30

how does that work in regards to royalty payments?  The first well has been paying out since Dec. 2011.  The alt 1 and alt 2 wells have been completed for several months now.

I have a second question.  We you go sonris.com, how can you tell if the well is a haynesvilleshale well or just a reg. well:?

thanks

Permalink Reply by Skip Peel - Mineral Consultant on July 30, 2011 at 1:03

All mineral interests within a drilling and production unit receive royalty from all wells drilled in that unit based on the same decimal interest as the original well.  In the wells listed by section and township on SONRIS Lite, Haynesville wells stand out quite easily as they are all relatively new, meaning they are at or near the bottom of all the wells listed in a section, and they are so much deeper than any wells that may have been drilled previously.  If the well is in a unit, the first part of the well name will be HA RA SUA for example.  This stands for Haynesville Zone, Reservoir A, Sand Unit A.  Within a field all units will have a similar designation.  Additionally almost all Haynesville Shale wells have an 'H" at the end of their name denoting that the well is horizontal.

Permalink Reply by Teresa on July 30, 2011 at 3:15

Thank you for the information.

Permalink Reply by Jay Rossi on July 30, 2011 at 1:36

I believe you may be receiving payment for all three wells, but cannot say for sure without reviewing your royalty statement. The two alternate wells were completed and turned to sales together and production for all three wells are being noted under a LUW code. Therefore, I believe all three wells production rates are being combined and you are receiving royalty on all three at this time.

Permalink Reply by Skip Peel - Mineral Consultant on July 30, 2011 at 1:54

The production reported on SONRIS Lite lumps production from all unit wells together but the royalty statement will list all the wells the lessee is paying the lessor on including those in formations and zones other than the Haynesville.

Permalink Reply by Teresa on July 30, 2011 at 3:16

Thanks for your info.