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Comment by Skip Peel - Mineral Consultant on October 18, 2018 at 6:38

Try this  discussion but also use the site search option in the far upper right corner of each page.  Enter a key word and hit "Search".  Torrent has been mentioned in several discussions.

https://gohaynesvilleshale.com/group/austinchalk/forum/topics/torre...

Comment by Matt Hall on October 18, 2018 at 6:24

I did a google search on Torrent, looks like they are in the business of re-entering old wells. The Sewell well looks like the only well in all 8 units. Is that an old AC well?

Comment by Ms.Dragonslaya on October 18, 2018 at 5:36

Thank you so much for the information.  My acreage is only 1.10 acres in Township 4 North, range 3 West.  The letter from Torrent mentions  A Sewell No. 1 Well, located in Section 23, Township 4 North, Range 3 West in Rapides Parish.  The letter states Torrent plans to apply to Commissioner of Conservation  for an issurance of an order pertaining to Austin Chalk Zone in Bayou Rapides, Louisiana. 

As always, your information is MUCH appreciated.  Grateful...,

Comment by Skip Peel - Mineral Consultant on October 18, 2018 at 5:25

Notice letters go out to mineral and surface owners of record within a proposed drilling unit and to those adjacent to a distance of 1000'.  Notice is required to form a "compulsory" unit which provides the applicant with the ability to force pool all mineral interests within the boundary.  This would include un-leased mineral owners and companies or individuals who hold O&G leases.  The end result is that your minerals can be produced without your consent - however Louisiana does have mineral laws which provide some benefit for those mineral owners who may choose to go non-consent.

The short explanation is that an operating company can withhold payment on the production for the pro rata share of the un-leased interest in the unit until such time as a well reaches payout.  After payout, an un-leased mineral interest receives their share of production revenue less deductions for Lease Operating Expenses (LOE).  Be advised that horizontal wells are very expensive and quite a few up here in the Haynesville Shale either never reached payout or only did achieve payout when the production had significantly declined meaning low income for the un-leased owner.

Practically speaking, operating companies would rather have all their owners in a unit leased.  They can however tolerate a certain percentage of un-leased acres in a unit.  This means that those with large acreage in a unit need to be under lease for the operator to reap a satisfactory profit.  Smaller interests are more vulnerable to being force pooled.

Comment by Ms.Dragonslaya on October 18, 2018 at 5:07

Yes.  I was wondering about forced pooling.  Our property is in the township and section.  Not living there, but lots of neighbors still living there.  Wondering what affect on them, too.

Comment by Skip Peel - Mineral Consultant on October 18, 2018 at 4:45

Are you wondering about Force Pooling?  Or, development activity?  Or, the possibility of royalty income?

Comment by Ms.Dragonslaya on October 18, 2018 at 4:40

I received a letter about force pooling and a map of the area from Torrent Oil in the Bayou Rapides field. I grew up there and wonder how this is going to affect people living there.

Comment by David Crockett on October 16, 2018 at 11:43

Great news blackjack

Comment by blackjackjackson on October 16, 2018 at 11:13

you are most welcome.  

Comment by Skip Peel - Mineral Consultant on October 16, 2018 at 11:08

Thanks for the heads up.  I'll post the plat from the application when it becomes available online.

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