.

Well: Denham Springs Country Club #1 (DSCC#1):
Link: LA State DSCC#1 Well Info Page
Location: Section 29, Township 06s, Range 03e
Spud 05/07/2014, Serial 247713, API 17063203200000,
Successfully completed 10/20/2014 as a gas well in the 16700 TUSC RA SUH 
Map & Photo Nov2014Earlier GoHaynesvilleShale DSCC#1 Forum thread,
Public Notice w/platPublic Hearing Part 1, & Part 2, & 1980 Plat Establishment

Hilcorp Energy Co. - Owner Hotline:
OwnerRelations: PO 61229, Houston, TX 77208-1229
MainOffice: 1201 Louisiana Street, Houston, TX 77002
Email: OwnerRelations@Hilcorp.com, http://hilcorp.com
Hotline: 713/209-2457, HotlineFax: 713/289-2842
Main: 713/209-2400, MainFax: 713/209-2420

LA Dept of Natural Resources (Executive, Legal):
General Information and Media Inquiries:
Ph: 225-342-8955, Email: dnrinfo@la.gov, Web: http://dnr.louisiana.gov

LA State Attorney General's Office (LA Chief Legal Officer):
Crime,Corruption,Consumer Protection: 1885 N Third Street, Baton Rouge, LA 70802
Ph: 225-326-6079, Email: ConsumerInfo@ag.state.la.us, https://www.ag.state.la.us

National Association of Royalty Owners (NARO) 
Louisiana Chapter: 
http://narolouisiana.org/

Louisiana Oil & Gas Association: http://loga.la/ 

Oil & Gas Royalty Calculator Excel Worksheet (spreadsheet, xls): 
Download DSCC#1 RoyaltyEstimator1-Simple.xls, or others here.

Mantra Land Services Web Based Oil & Gas Royalty Calculators.

Gas & Oil Sale Prices:
Link: EIA.gov WTI Crude Oil Spot Prices or LA Crude Here
Link: EIA.gov Natural Gas Wellhead Prices (Henry/NYMEX) 
Link: Bloomberg Natural Gas Wellhead Prices (NYMEX) 
Link: Bloomberg WTI Crude Oil First Purchase Prices (NYMEX)

Prior plugged & abandoned well: 
16700 TUSC RA SUH DavidsonBuckle#1 & Map &
Location: Section 48, Township 06s, Range 03e

Relative neighboring well:
16700 TUSC RA SUF DavidsonBuckle#2, & Photo Nov2014 & Map &
Location: Section 48, Township 06s, Range 03e

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Views: 6330

Replies to This Discussion

Thanks for the info.

Attached are PDF of first leaselease ratification below, but these refer to several other documents of mineral assignment & release; and royalties. The clerks were very pleasant and helpful, so it's likely that one could call and get balance by email. I'll get back to this later (legal opinion), so please post anything relative, if you don't mind.

Attachments:

This week's scout report:
07/07/2014 Depth:17351; DRL&SLIDE T/17531'; WELL STARTED FLOWING; C&C

DavidsonBuckle#2 well (holds February 1971 lease) also had zero production for several months in 2012, but the most recent work permit report stating "unsuccessful re-completion" seems to be  what nails it down?  The re-perforations likely explains the drilling rig still sitting there (unsuccessful re-completion)?   Just curious of what Hilcorp will make of this now, regarding DSCC#1 well leases & division orders?  What should we expect (typical)?  Anticipation ;) 

The Davidson Buckle #2 is a unit well for 16700 TUSC RA SUF Zone.  The DSCC #1 is a lease well permitted to the TUSC B Zone.  Different locations, different zones, same operating company.

16700 TUSC RA SUF - See plat for units

http://ucmwww.dnr.state.la.us/ucmsearch/UCMRedir.aspx?url=http%3a%2...

DSCC #1 Well Plat - Page 9

http://ucmwww.dnr.state.la.us/ucmsearch/UCMRedir.aspx?url=http%3a%2...

The leases unitized under 16700 TUSC RA SUF likely expired with 4 consecutive months with no production in 2012.  However it is highly probable no lessor pooled in the unit demanded a release.  That's largely a moot point since production was commenced 5 months later.  So now production ceases and there is another legal opportunity to have minerals released, if anyone is paying attention and understands what is at stake.  Caveat: the language in the lease may address what "operations" may hold the lease in force sans production.  It is the responsibility of a mineral owner to understand the terms of their lease, to monitor the well or wells producing under that lease and to seek professional counsel if they are willing to be proactive.  This has no connection whatsoever with the DSCC #1 which is on lands not covered in the SUF unit.  Compare the plats.

The units you list are not a single lease.  Each unit is made up of only the lands within it's boundary.  Production in one can not hold leases in others excepting certain situations that are not relevant to this discussion.  Hilcorp is not claiming that SUA thru SUI are held by production in SUH.  You are misunderstanding or they are telling you something that is not correct. You are clueless as to compulsory unitization and need the services of an experienced O&G attorney.  Waiting would be a mistake.

When you say, "more than one plat" do you mean, more than one unit? Yes, if it is an old lease for a contiguous tract without a horizontal Pugh clause then production in one unit could hold the lease in force for a non-producing portion of the tract in an adjoining unit.  There is no law, nor is there any business reason for Hilcorp or any other operating company to terminate a lease without a demand from a lessor.  The responsibility lies solely with the mineral lessor.

DJ:

Landman here, and will say via private message to you, once I have verified your ownership interest in this well, as I have for other owners / members of this forum.  I am not authorized to comment on specific lease and well questions on a public forum in my current capacity - however, some conclusions that you have made re: HBP and lease maintenance are incorrect.

Do you happen to own Lot 104?

Hi Dion, and thanks for your input.  I was hoping that you might join in.  A drilling rig recently appeared on the old DavidsonBuckle2 site, which had me searching for answers on the DNR site. Looks like production ceased on multiple occasions.  Do you read that this lease can be held by operations?    

DJ:

In broad brush, yes. The lease (virtually all leases, actually) contain(s) provisions allowing for timely and/or continuous good-faith operations to maintain an oil and gas lease in lieu of and/or upon cessation of production. There are defined limits upon what can be considered timely and/or continuous; in most cases, there is a maximum amount of time established as to the duration of interval between cessation of operations and/or production and the commencement of subsequent operations (usually 90 days, but can be 120, or any range between 60 and 180 days in my experience.) The point of such provisions is to provide a mechanism of incentive for lessee to reestablish production or promote exploration and operations for new production, e.g., spud another well. There were reworks done in 2012 (during the period that you noted that there was a lapse in production) which resulted in the well being placed back into production and earlier in 2014 (unsuccessful), and activity that has commenced on another reworking procedure begun recently (evidenced by your recent photo).

I am more than happy to answer other specific questions now that I have clearance to do so, but again, as a landman working on this project I am not cleared to release information on specific matters on a general forum. I list the above question in my last post to hopefully both confirm the location of your interest and provide some partial confirmation of my specific knowledge of this area without providing too much unique personal identification. I can reach out via private message. What you choose to do with the knowledge shared specific to your purposes is up to you.

Thanks again Dion.

11/4/2014
Can someone please interpret the latest available statuses for DSCC#1 production & DavidsonBuckle#2 recompletion?  Looks like maybe both went sour (or difficult)?  Any other info available?  Thanks in advance.

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