Replies to This Discussion

Permalink Reply by Ann Edgerton Darling on November 5, 2010 at 2:40

Does anyone have more information about what is happening with Guin 20 #H1 well? I read the article about Chesapeake halting production unti the prices rise and have also heard rumors about nothing happening until the pipeline is in place. Living out of state makes it hard to know what is going on.

Permalink Reply by Les Bamburg on January 20, 2011 at 9:52

Chesapeake has revised the well permit and is drilling a sidetrack lateral ~ 660 ft east of the original location.  I have attached the revised permit and plat. 

Attachments:

• Guin 20 H1a Well.pdf, 75 KB

Permalink Reply by StratO on February 7, 2011 at 6:20

Is there any new news on the S8 T13N R7W well? The last I read was that it is waiting on a pipeline. I assume then that it is completed and waiting for production. From what I've read here, it must have been good enough to spur more drilling in this area. Is there any information on the pipeline and when it may go into production? Once it's in production, what is the general timeline before royalties are paid?

Permalink Reply by Les Bamburg on February 7, 2011 at 7:11

StratO, I have not seen any recent information but I suggest you drop GoshDarn a line since he generally has the best intel on this area.  Yes - the additional drilling by Chesapeake is an excellent sign.

 

Generally I think you should look for an intial royalty check within 60-90 days of first gas sales.

Permalink Reply by StratO on February 7, 2011 at 7:21

Thanks Les. Are "gas sales" synonymous with "in production" once the pipeline is finished? Is there anything I can read to understand the process from here? I'm just trying to get an idea of what to expect.

Permalink Reply by Les Bamburg on February 7, 2011 at 7:29

StratO, yes - gas sales would be synonymous with producing into the gas sales pipeline once completed.  I do not have a particular information source but would recommend this site and maybe use Yahoo to find other information. 

Permalink Reply by StratO on February 7, 2011 at 7:49

Thanks Les. You're always very helpful to so many here. I really do appreciate it.

Permalink Reply by The Shadow on February 7, 2011 at 12:50

Have land in section 5 which is next to section 8 that has been drilled by Chesapeake.  Representative leasing for Chesapeake says that Chesapeake is now not interested in leasing in section 5 because there are land owners holding out.  Does anybody know about this or that can share what is happening in section 5?  Would appreciate responses on this.  Thank you in advance.

Permalink Reply by Two Dogs, Pirate on February 7, 2011 at 18:22

Holdouts could come into play especially if they are "Ride em down holdouts". Why spend the money if you have 25% UMI? The price of NG is low and companies have to cut to the bone to make a profit. CHK may have an advantage but who knows?

Permalink Reply by jr on February 11, 2011 at 9:52

most of the companies that are big players had their gas hedged at well above the market price. if natural gas was at $1.00 mcf and the companies had it hedged at $7.00 per mcf they would make more because they would be paying the landowner market price not hedged price plus charging a enhancement fee or transportation charge paid to a company they own.

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