Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on December 17, 2009 at 16:53

Matt. Section 9 is a Goodrich drilling unit with a Chesapeake well Waiting On Completion (WOC). Goodrich should have sent you a pre-application notice letter when they applied to form the HA unit for you section. Chesapeake, nor any other operator, is required to send you notification concerning the permitting or drilling of a well in the unit.

Permalink Reply by Henry on December 18, 2009 at 0:45

Skip,
Would you explain this a bit more to me?... Does this mean that Goodrich originally had a siginificant fraction of the leases so they formed the unit? Then they hired Chesapeake to do the drilling for them? So does Chesapeake do this for a fixed cost or some fraction of the gas? But Goodrich then manages the whole thing, is responsible for paying mineral owners, and will run the well for the next 100 years (or until they assigne it to someone else)? is this how it works?

Permalink Reply by Skip Peel - Mineral Consultant on December 18, 2009 at 3:55

Henry.

There is no state requirement for acreage under lease to one party for that party to apply for unit status. There are numerous examples on sections/units where the unit is in one company's name but another is drilling the well. When a company gets a unit order from the state, it gives them the right to be the operator of the unit. Or to designate the operator of the unit. As an example, Mainland Resources has unit orders and Petrohawk acts as the operator and drills the wells. Goodrich and Chesapeake have had a working relationship since the beginning of the Play. And Chesapeake obviously has the superior technical expertise and financial ability. When considering the relationship existing between operators in the Play, it is wise to keep in mind that there are some units/wells that are the sole property of the operator and their royalty owners. However a significant number of units/wells have an operator and one or more (in some cases, many more) working interest owners. WIOs must pay their proportional share of costs to maintain their ownership interest. Some of this is simply the result of competition. Some is the desire of one company to know what is going on in a competitor's unit. Working interest owners are privy to the science produced by each well. The operator pays the royalty owners.

Permalink Reply by Henry on December 18, 2009 at 4:36

Skip,
So who would the mineral owner deal with here -- Goodrich or Chesapeake?

Permalink Reply by Skip Peel - Mineral Consultant on December 18, 2009 at 4:40

Chesapeake.

Permalink Reply by Matt B. on December 18, 2009 at 18:45

Do I need to contact Goodrich to see why I'm not recieving anything in the mail about this well or do I just sit and trust that they will send a check (if the well produces) when the time comes? Also is there any way of keeping track of what the well is doing? Thanks for your input...it's VERY appreciated.

Permalink Reply by Skip Peel - Mineral Consultant on December 19, 2009 at 3:27

Matt. Operators do not send letters concerning wells. There is no state regulation that requires it. Companies send notice letters to set up units, not to drill wells. You can track "your" well on SONRIS, the state oil & gas database. To learn how, go to the SONRIS Help Center group page here on GHS and read the instructions.

Permalink Reply by LesterG on December 19, 2009 at 16:00

matt, can you or anyone else responding to this thread tell me what your lease bonus offer was and royalty? i have been offered $8500 @ 25% in the sec 27 area of t14n r15w

Permalink Reply by Matt B. on December 19, 2009 at 17:37

We got blessed and hit the nail on the head...$20,000 @ 25%

Permalink Reply by kittycatmama on December 20, 2009 at 4:45

when did you get the $20000 an ac. and from whom? We are near there (not that section) and unleased. WAs that $20000 an ac. offer in last 60 days

Permalink Reply by Matt B. on December 20, 2009 at 6:35

No it was nearly a year ago...

Permalink Reply by kittycatmama on December 20, 2009 at 12:55

our highest bid in area near Keatchie as of right now is $10000 per ac.25% royalty. We are hoping for a little higher as gas prices go up. Will wait and see