"Thanks. I recall that when Cabot Oil and Gas drilled the vertical well von Goetz #1 about two miles north of the Thomas cemetery on HWY 21 about 9 or 10 years ago, that on the next earnings call the President of Cabot said in response to a question…"
I have been under the impression that a well designation such as #1 means the well is vertical, #1H means the lateral is in the Haynesville shale formation (also called the lower Bossier) and #1HB means the lateral is in the Bossier Shale formation. Now there are some wells designated #1 HU. For example:Aethon Energy KVG-Knox Alloc #3HU (API # 405-30709)BP America Wallaby #6HU (API 405-30704)BP America Rhea #2HU (API 347-33405)Does anyone know what the "HU" designation means. I suppose it could…See More
"They never turn in an IP report until they have a Lease ID # for the well. They turn in a G-1 "Well Record Only" (G-1 report with no IP data) once the well is drilled. It will have all the depth, formations record, casing & cement info…"
"Thanks, I appreciate the information. I suspected that operators were using more stages now as well as more sand and water. I took a look at production from the Columbus #2HR well and it looked to be a good one. Occasionally I look at completion…"
"Yes, I have production figures on all of them. It's not just the lateral length and amount of proppant but a combination of those factors along with shorter stages, more perfs, . Those two early wells you named were EOG wells drilled in 2010…"
"Have you checked the performance of the Koala Unit wells? I'm amazed at how much better they are than the original wells around Denning like Freeman Farms and McKinney, even taking into account the longer laterals. I gather they used three…"
"They have not. The permit for the #2H expired in January. The #2HB permit is still open until April next year. They have been, until May, concentrating on Angelina Co., with six rigs, but they have recently moved two rigs to Nacogdoches Co., two out…"
"This week I received a PSA for the Walters Unit from Covey Park. Sharing is based on the percentage of the lateral in each unit. Since longer laterals are the most economical drilling approach now I expect there will be many PSAs for the older…"
"World's Largest Battery Proposed:
Florida Power and Light is proposing to build the world's largest battery to smooth output from solar farms. The 900 megawatt-hour capacity battery is expected to cost $400 million. That is $444/kWh. Here…"
"What happened to the high producing Banana slugs #1H (Lease ID # 269459). It stopped producing last July with monthly production of about 20,000 Mcf (after producing over 11 bcf), but has started up again with production of almost 130,000 Mcf this…"
Do you own 100% of the minerals in the unleased tract? If so, it should not be included in the unit. If not, if the operator has leased any of the other interests in the tract, it can pool the entire tract.
The question then becomes - is the well on the tract or another tract in the unit? If the well is on your tract, you are an unleased co-tenant and am entitled to your entire share of the production after pay-out minus operating expenses. So, if you have a 1/2 interest in a 100 acre tract and the well is on that tract, you are entitled to 50% of the well's production after pay-out minus operating expenses. But if the well is not on your tract, you are not entitled to anything from it.
It is true that operators' accounting is certainly going to have the operator over the unleased co-tenant but "funny math" will only get the operator so far. The State doesn't offer any specific protections for this situation above what the law already affords - suits for conversion, accounting, etc.
Feel free to message me personally if you would like to discuss this further.
Hello! I hope the site is a place for you to learn, network and contribute. My name is Keith and I started the site in June of 2008 to open up lines of communication between landowners. Since then, we have grown to over 10,000 members.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More