Replies to This Discussion

Permalink Reply by Mel M on May 23, 2010 at 10:54

jffree, would you say that it is good news that the rig spud another well?

Permalink Reply by jffree1 on May 23, 2010 at 11:04

If it drilled both the vertical and horizontal portions of the well, they made decent time and probably didn't have a lot of problems. It is not uncommon to see a rig on the same well for over 70 days in Shelby County... but SWN is a very experienced operator (I don't know anything about DeSoto Drilling... maybe someone can tell us about them). Don't know though, whether DeSoto rig 20 drilled the entire well or just the vertical portion.

Permalink Reply by adubu on June 27, 2010 at 7:32

Mel Marshall--as jjree1 said on may 23rd post about if and when they drill then If your minerals are in the unit you will receive a Division Order 1st before you receive 1st royalty. You want to review very careful to make sure your % inet interest in the well is correct before signing.------------------ your total of net acres minerals/total acres in unit X % royalty in your lease = % interest. Also if you are in the unit you can call royalty owners department of SWN (if that's who your lease is with) and ask about the well with update on well. You are intitled to this infomation since you are mineral owner in the well. In general after well completes drilling and rig is moved off site the well will then have to be fac and connected to pipeline for sales. The well could set completed for period of time waiting on fac crew to work it in to their schedule to frac and in some well will want pipeline to be in place before well fac done. Company may leave it unperf and unfac for time waiting for better prices or variable so can simply HBP the lease and pay shut-in royalty for time. So lots of factor in play as far as completion after drilling for gas to go in pipeline to sales and royalty gets paid each month with production. You also want to check and confirm your minerals are in the unit--you can look at plat map and P-12 list on rrc site or if you do not know call the company and ask them if you are in the unit.

Permalink Reply by Mel M on June 27, 2010 at 8:20

Adubu - this is most helpful information. I appreciate your time!

Permalink Reply by adubu on June 27, 2010 at 8:34

you are welcome hope you get in good unit with many wells and formations that pay some good "mail box income"

Permalink Reply by Les Bamburg on June 28, 2010 at 15:23

Mel, just a point of clarification. A shale well that has not been hydrofrac'ed cannot hold a lease by production (HBP). A well has to be capable of producing in paying quantities to HBP lease acreage.

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