Replies to This Discussion

Permalink Reply by Joey on August 18, 2010 at 13:30

One more question... does a well have to be built in my section in order to receive royalties? I have a signed contract for the mineral rights with Encana from 2007, which will expire in 2012, but I really know nothing about how the royalties work at this point?

Permalink Reply by Les Bamburg on August 18, 2010 at 15:27

Joey, yes - the horizontal lateral has to to be drilled and completed in your section (unit) in order for you to receive royalties. Of course a well has been drilled in your section so you are well on your way to getting royalty payments.

Permalink Reply by Les Bamburg on August 18, 2010 at 15:24

Joey, shown below is some information about your section. A Haynesville Shale well has been drilled in the section and is currently being frac'ed (as of 8/11/10). The well should be placed on production within the next few weeks and the initial flow test information should be posted on Sonris at a later date.

EnCana, Red River 1 LP 7 #H1 Well, Serial #240843, S7-T12N-R8W
S7-T12N-R8W, HA RA SUH Unit, Encana, Liberty Field, Red River Parish

Permalink Reply by Les Bamburg on August 18, 2010 at 15:33

Joey, attached is the drilling permit for the well.

Attachments:

• Red River 1 LP 7 H1 Well Permit.pdf, 74 KB

Permalink Reply by Joey on August 18, 2010 at 16:00

So this is the only well in S7 T12N R8W at this time? Thank you SO much for the information, Les. I am in SD, CA and cannot keep close tabs on what's happening there. I will keep my eye on this blog and may ask further (stupid) questions later. By the way, my father was Odis.

Permalink Reply by Joey on September 4, 2010 at 7:27

Any additional info on this well? It still shows as being in the Frac stage as of 8/11/10 on SONRIS. I know they are behind on updating that website, so am just wondering if anyone (Les?, Highwayman?) know any current information?

Permalink Reply by Les Bamburg on September 4, 2010 at 8:17

Joey, I have to rely on those with "eyes" on the ground such as Highwayman or RedRiverGal for updates.

Permalink Reply by Robert Duke on October 11, 2010 at 6:32

Hi, Folks,
I was wondering if anyone has any more info on this well, now that we are about 2 months since the last sonris entry (talking about s7-t12n-r8w, #240843). I had "on the ground" info from someone close to the well (I am up around Seattle) about 2 weeks ago, indicating that the piping appeared to be all hooked up (not sure what this really implies) and that there was some sort of pressure gauge indicating about 8000 lb of pressure. I have been made a bit more nervous about how this well is going to do, based on poor showings by two wells to the immediate southwest in s24-t12-r9w (241178, 3875 MCFD, 21/64 choke, 3804# CP) and s14-t12n-r9w (240709, 3043 MCFD, 19/64 choke, 4431# CP), but if the pressure is a CP, I am guessing it is promising, but they have just not entered the IP data? Overall, it looks like wells slightly to the west are coming in at good IP's; just a matter of where the edge is, so to speak. Anyway, I would much appreciate any more insights as to what is likely happening in the SE quadrant of Red River Parish; are the two low-producers most likely defining an edge, or could it be problems with these wells? (I see the occasional well in the middle of good producers that does poorly, so I gather things can go wrong, or the play can vary in quality internally, or both). I am guessing that with gas at less than $4, there is not a lot of incentive to bring more wells on line, other than HBP, and for me at least, that gives them several more months before they have to start pushing gas down the pipe.
Thanks much in advance for any insights! - Bob Duke

Permalink Reply by Joey on October 22, 2010 at 7:28

Finally just called Encana's field office in Coushatta to get info on this well. They were very helpful and informative. They said this well (#240843) was Turned to Sales on 9/1/10. They said the production right now is averaging around 3.5 Mmcfe per day. Everyone who has leased mineral rights in this section should receive a Division Order soon explaining how the royalty checks and deductions will work. Normally, it takes about 60 days after initial production to receive the first check, which generally covers the first two months of production. After that, they are paid monthly, around 30 days in arrears (for example: October production would be paid sometime in December). Will keep everybody up to date if I find out anything else.

Permalink Reply by Robert Duke on October 22, 2010 at 7:52

Hi Joey,
Well, thanks much for getting the information. It would be interesting to know the choke they are using, but this does not sound good in terms of production for this well. Les, or anyone else with deep knowledge on the subject, any idea if this likely says we have hit the edge of the play, and are out of the action? I am presuming that in these low-producing sections, there is going to be no incentive at all for a decade, given current natural gas prices, to drill extra wells?
Thanks again for any additional insights - Bob Duke

Permalink Reply by Joey on October 22, 2010 at 9:22

The guy I talked with said that because it was a lower producing well, did not mean they would not possibly put other wells in our area. My understanding of it was, a lot depends on the fracturing, how it is done and how much of it they can fracture. It is also what he called a wet well, which means right now it is also producing a certain amount of water. I am not sure how that will effect future production of the well. He said they have been learning a lot as they go along, as well. I am going to follow up some more on this in a few weeks if I can.

Permalink Reply by Robert Duke on October 22, 2010 at 9:34

Hi Joey,
Okay thanks for this and any additional future info. If they can figure out how to do these better, that would be great! There are now 4 wells in the area with roughly this level of production (with 240963 just above us coming in at about this level too, and wet - on sonris today); I guess there is also some possibility that the decline curve would be less severe, but who the heck knows what all the possible adjustments are that would make the wells in this area profitable. I would think that we could still do alright on wells drilled into the Bossier Shale too, as we are supposed to be in an area with reasonable potential for overlap (heck, they might want to back up and drill a horizontal into the Bossier instead ;-)
Best wishes - Bob Duke

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