Has anyone heard any news regarding this well?? Still no IP released that I know of.
You are correct regarding leasing dynamics in the Haynesville Shale Play, Steve. It was competition between Chesapeake and Petrohawk that drove the bonus offers. Unlike the TMS much of the core of the LA Haynesville was already leased for Cotton Valley development. CHK and HK (now BHP) held CV leases in the same area namely south Caddo Parish, north DeSoto Parish, southwest Bossier Parish and NW Red River Parish. This is still the core of the core with astonishingly productive wells. They butted heads to aggregate as many acres as possible in that area until HK's prime lender Lehman Brothers went bankrupt and their credit line disappeared. Other operators were certainly affected but held offers in check in other parts of the play. Still from a historical perspective the bonus offers were unheard of because this was the dawn of unconventional, resource plays and it was unknown how many such plays might exist. Before HK lost its ability to compete it did make the high water mark in lease offers. They paid over $30,000 per acre bonus and a 30% royalty for some south Caddo rock in a state mineral auction. That perfect storm of conditions will likely never occur again.
Interesting dynamics were at play in the Haynesville that, like you stated, will probably never happen again and certainly not in the TMS. It will be interesting to see how much acreage Encana and Goodrich will hang on to in the TMS. I have heard that Encana has been renewing some leases recently, at least on the state line near Woodville. There are several large parcels that come up for renewal in W. Fel. parish in the Spring - we are hoping this acreage will also be renewed. I am sure there is a lot of acreage near initial lease term expiration in the eastern part of the play as well.
If anyone out there has any renewal or new leasing news, please share it. I did hear that some landowners in Amite county have recently gotten calls from brokers trying to buy royalties at around $4300 per acre.
At $4300/acre I suspect those offers are for mineral rights as opposed to royalty.
Could be. Maybe someone on this forum will have direct knowledge of any offers and will let us know. I did not hear whether the offers were for acreage that already has a producing well or acreage in a proposed unit or otherwise.
Steve, I am in the process of possibly selling some of my minerals in Amite County where a unit has been submitted to Mississippi Oil & Gas Board, I will post the outcome.
Thanks. Best of luck. I hope you get top dollar !
From Goodrich's report today...
"Both the non-operated Anderson 17-2 (7% WI) well, which was previously reported at 1,540 BOE per day, and the Anderson 17-3 well have been on an accelerated choke schedule in preparation of the installation of downhole pumps which have the potential of moving high fluid volumes"
Okay, someone interpret this for me.
I recall the Crosby well actually picked up production when pumps were installed.
Are they suggesting this is a possibility here?
Actually, ShaleGeo, I'm aware of an exception to that rule of thumb.
In general, though, I agree. The news release seemed to suggest
there was something special about this situation.
"But a well never improves with age." That statement should be improves "naturally" with age. Most oil wells have increased production after man made intervention, i.e. pumps, work overs etc. Call it a GOR facelift and like a facelift doesn't make you younger it does make you "look" younger for a time.
I understand the 17H1 daily rate has actually improved since the 17H2 and 3 were fracked ,but of course that was a temporary uptick and decline is inevitable with age as you said.
Rumor is that they are planing to install downhole "jet" pumps, which they hope will increase daily production and operate more efficiently than the pumps they are using on the 17H1 and 18H1. An explanation of how jet pumps work can be found on the internet. A different type pump is being used on the Crosby. They have been opening the chokes periodically ever since they 1st flowed these last 2 wells - last I heard they were both in the high 20's/64ths and are probably flowing in the 500 barrel per day range at this point and will go on pumps before they decline too much more. IMO