Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on June 7, 2010 at 5:27

As noted in this discussion title, Petrohawk has expressed an interest to drill elsewhere. BEUSA and Samson Contour may be the only interested operators in the area. Those in the industry who have expressed no current interest in this particular corner of the play are doing so, I believe, from a review of well logs. No, none of us can force a company other than BEUSA to make a lease offer. And often the best lease offer is from the company interested in drilling. If BEUSA was the only interested lessee I would certainly negotiate with them. I would ask for a lease clause prohibiting vertical HA completions but I certainly do not know if that would be accepted.

Permalink Reply by LWC on June 7, 2010 at 7:39

Skip Peel, thanks for your input. You've been very helpful.

Permalink Reply by LWC on June 8, 2010 at 3:32

Skip Peel and Jack B,
Attached is the pre application letter we received from BEUSA. Could you explain the pertinent contents especially # 5-10 on page 2? Your input is really valued!

Attachments:

• pre app letter BEUSA.PDF, 198 KB

Permalink Reply by Skip Peel - Mineral Consultant on June 8, 2010 at 3:52

5. Standard language, BEUSA is applying to be designated the operator of the proposed units and requesting the Office of Conservation to designate a unit well. The unit well log will define the depth range of the formations to be produced in that specific area of the Sligo Field.

6. Standard setback language affirming that the 330' required setback from a unit boundary is measured from the perforations in the lateral, not from the penetration point.

7. Combine downhole production (commingle) from all the approved units (formations). BEUSA wants the approval to produce from more than one formation through the same wellbore. In areas where the formation pressures in the Haynesville is high, it is impossible to commingle as the difference in formation pressures is too great. Where Haynesville formation pressures are low, it is conceivable that gas from it and other shallower zones could be combined. As I have seen no mention of actual combined production including the Haynesville Shale, this may be language that anticipates future possibilities to commingle production.

8 - 10. BEUSA is requesting that existing field orders for the mentioned stratigraphic formations (units) in the Sligo Field be extended to these proposed units for which they make application.

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