Replies to This Discussion

Permalink Reply by jffree1 on September 26, 2011 at 9:30

It just means it is drilled but has not been completed (fracked) yet.  It is called "shut-in" while it is waiting on completion (which is a temporary condition, usually).

Permalink Reply by Tracie Wolfford on September 26, 2011 at 16:30

Thanks!

Permalink Reply by CH on November 10, 2011 at 17:45

Fracking is complete now. Does anyone know when Chesapeake will start producing and paying royalties?

 

Permalink Reply by jffree1 on November 11, 2011 at 2:43

We will know it is producing when they start turning in prod. reports and that will happen long before the first royalty check is cut.  It will be at least 120 days from the end of the month of first production before they are required to pay royalties and, even then, payment could be delayed due to title issues in the unit. You will receive a Division Order when they are about ready to send out checks but be prepared to wait another four to six months for that to happen.

Permalink Reply by CH on November 28, 2011 at 13:31

Our lease has run out and it was sold without any notice. So we are under a lease without any payment for a year or ten months?

Fracking was completed the 15th of Nov.So we get a Division order in March and a check 6 months from then?

Permalink Reply by jffree1 on November 28, 2011 at 16:10

Once you get the Division Order, sign it and send it back... a check should be along soon thereafter... a matter of a few weeks, not months.  You won't know until January if the first production was reported in November.  There is a two month lag in reporting.    

If your tract is included in a drilled unit the tract was held first by operations and once the gas is flowing it is held by production regardless of when the term expired. When they cut the first check it will cover at least the first three months and maybe more depending on how many months they are behind.  They usually try to catch you up so that every check after the first one is for one month of production, paid monthly (two months behind), unless the payments are really small and then you may get paid less frequently.

 

Permalink Reply by CH on November 29, 2011 at 18:53

I don't mean to be a nuisance but can they just report production whenever they get ready? My husband was at the site and the pipeline was already there waiting for them to finish fracing. They finished that on the 15th. I am irritated that no one involved us int he sale of the lease.  So are the others on the lease.  I don't like how they don't have to let us know what is going on and when things are happening!

 

 

Permalink Reply by jffree1 on November 30, 2011 at 2:26

Notice of assignment is something you have to ask for when you lease.  If it is not in your addendum you won't receive any notice.  

Reporting is different with each company.  Some report early in the month and some in the middle... and some don't report until the last week of the month.

If I remember correctly Chesapeake usually reports in the middle of the month so they will turn in Nov. production around mid-January. 

Permalink Reply by CH on December 20, 2011 at 22:18

Chesapeake said it started producing Nov 15th. Was comp in Oct not Nov.

Permalink Reply by jffree1 on December 21, 2011 at 4:17

They did not turn in any production on Hatch 1H for October.  When they turn in the IP report, it will have the completion date on it.  

I would be about the last to make an excuse for CHK but you should keep in mind that when they frac a well, each stage has a plug in the up-hole side of the casing.  Once all the stages are complete all of the plugs have to be drilled out before gas can flow so they may not have begun flowback until Nov. and then it would have to return frac fluid for a week to ten days before there is full flow for an IP test.  They, more than likely, gave you the test date.

Permalink Reply by jffree1 on January 5, 2012 at 15:04

The G-1 report for Hatch GU SAG #1H is in: 

IP was 13.281 MMcfd on  a 22/64 choke with a 7278# flowing pressure

Attachments:

• 405-30435 G-1.pdf, 26 KB

Permalink Reply by Tracie Wolfford on January 11, 2012 at 14:06

Are these numbers good, average, poor?  Any input on this would be appreciated.  Also, what is the following pressure (definition)?

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