Replies to This Discussion

Permalink Reply by Les Bamburg on October 30, 2009 at 9:51

Dawn, companies that are active in Red River Parish are EnCana, Petrohawk, Questar & Chesapeake. If you provide your Section-Township-Range I can check who may be active close to your location.

Most of the companies are still leasing property and may be interested in your 20 acres. You can enter a lease agreement at any time. If you do not lease you still participate in any Haynesville Shale well drilled and completed in your section. The well operator will simply deduct your share of any costs from your share of the well's production. Once the operator has recouped the cost of drilling the well you should begin receiving a payment for your share of the production less operating costs.

Permalink Reply by Jeff on November 2, 2009 at 3:50

Les, I have 2 questions for you. What would be your advise on contacting these companies to see about interest in leasing land, we have 20 acres unleased in RR parish 34-12-9, or just waiting until they come to us?
With the decline rate of the wells drilled would it make more sense to lease rather than be forced pooled? Take the 25% from the greatest production or wait until the well is paid off and lose the best months of production.

Permalink Reply by Les Bamburg on November 2, 2009 at 11:19

Jeff, the activity is gradually moving south into your area but it will likely be several months before any wells are permitted and drilled. You may want to contact EnCana & Petrohawk just to test the waters but don't be surprised if you receive little or no interest at this time. By 2010/2011 activity should pick up and you may be able to get some competition between companies and a better offer.

I have not run numbers lately to get a sense of the difference in present value between leasing and going unleased. If the values are in the same neighborhood then leasing probably is the better choice since it requires less involvement by the mineral owner.

Permalink Reply by Jeff on November 2, 2009 at 11:33

Thanks Les for the honest opinion. I also think that leasing is probably the better choice taking into consideration that the decline rate is so steep. Also there are no guarantees in this business.

Permalink Reply by Dawn on November 3, 2009 at 5:07

Les, My land in RRP is in Section 16, Township 12 North, Range 9 West. I hope this is what you are asking me? I found this in my land discription.
These people/company are in here on my parish road clearing the space for the wells. They started yesterday. It is off Esperenza Rd, on Starnes Rd. This dirt road isnt even 1/2 mile long. But I believe they are to put 2 wells right at my front door. So I am concerned as to what do I do?
Thanks for all your help!
Dawn

Permalink Reply by Les Bamburg on November 3, 2009 at 9:39

Dawn, EnCana has applied for units in both Section 16 and Section 9 to the immediate north and would likely be the operator for the planned wells. Since no well has yet been permitted, it is not clear if one or both wells are targetted for completion in your section. I will be on the lookout for the well permit and will let you know once it is available.

It appears most of the acreage in your section is owned by two people (entities) and I would assume are leased to EnCana. You may want to contact EnCana's Dallas office for additional information or to gauge their interest in leasing your 20 acres.

The following is the proposed unit for your section that is scheduled for hearing in Baton Rouge on December 1st.

S16-T12N-R9W, HA RA SUM Unit, Encana, Carrol Creek Field, Red River Parish

Permalink Reply by redrivergal on November 4, 2009 at 10:11

Dawn,
The Encana contact person in Coushatta is Ron Stark at 932-8602. (It's in the phone book). Surveyors for Encana are working your area and our area this week marking section lines, etc. We're in Sec 22, T 12 N, R 9W, just SW of you, on the Hickory Grove Rd.