Replies to This Discussion

Permalink Reply by JWC on March 19, 2010 at 13:54

Excellent post ALongview. Thanks.

Permalink Reply by Mike on March 19, 2010 at 23:33

Listened to the the webcast. The Bridges square is a mid bossier at 21 mmcf. Sounded good to me also.

Permalink Reply by ken hatcher on March 19, 2010 at 14:09

Alongview, this is good stuff....put hyperlink on main page. If the Bridges square area is correct...cha-ching!

Permalink Reply by jerry mccarty on June 27, 2010 at 3:05

Can anyone tell me the correct well (proation units) spacing for the different depths (zones) that are allowed by the TRCC in northern Sabine co. Tx. Thank you ---Jerry

Permalink Reply by jffree1 on June 27, 2010 at 4:33

Jerry, Haynesville is 40/640 + 10% BUT there is an additional acreage allowance based on the lateral length of a horizontal well which could take it up into the 900-1000 acre range (possibly larger) for proration units. Even with language in a lease which states units of 640 acres, operators are creating pooled units larger than 704 acres. This will continue until someone decides to contest it in a court of law.

You should note that these are two different types of units with different purposes.

Permalink Reply by jerry mccarty on June 27, 2010 at 4:58

Thank you for your reply--I have 130nma in 1303 gross. It is or was my understanding that if a well is drilled (for example) in the cotton valley, a well could be spaced on 20 ac. Hasynesville/Bossier on 40ac. I guess what I need to know is how to maximize value with wording in a lease. Thank You--Jerry

Permalink Reply by jffree1 on June 27, 2010 at 5:24

I would have to go look up the field rules for the cotton valley field, jerry. Statewide rules are 40/640 but not all fields conform to statewide rules.
You need to address that under a "Pooled Unit" clause in the addendum. Talk to a good oil & gas attorney or have one draw up your lease. If you fill up your lease with covenants but do not add conditions (if ___________ happens/does not happen, this lease will terminate) under which a lease would terminate ... your lease still has no teeth. It is worth the money to hire a good lawyer.

Permalink Reply by jerry mccarty on June 27, 2010 at 6:11

Thank you --I really appreciate you responding---Jerry