Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on January 15, 2010 at 13:23

Ringold Redskin. Thanks for the heads up. WSF is a division of Petrohawk. Whenever you see WSF or KCS, think The Hawk. It could be a farmout deal as Will-Drill does have leasehold in the area and doesn't drill HA horizontals. All things considered, I think it's a good turn of events for mineral owners in that unit. Good Luck.

Permalink Reply by Ringgold Redskin on January 15, 2010 at 13:46

Ok, I was confused...not the first time. WSF owned the section HBP, now JAG operating has it... both were a sister company to Will-Drill. I remember now... the Hawk bought WSF early last year. Its hard to keep up with all the swapping!
I guess WSF ended up with the deep rights as the producing well is a Rodessa at <5000 feet.. I may have to look into this as JAG is operating the well to hold the section.
Thanks RR

Permalink Reply by Skip Peel - Mineral Consultant on January 15, 2010 at 13:56

It doesn't matter who's drilling what formation/depth if the leases are "all depths" (no vertical Pugh clause), the unit/leasehold is held by production to all depths. It is an everyday occurrence that one company has the leases and shallow production and sells or joint ventures the deep rights to another company that is a shale player. I think that it's a good turn of events for mineral owners. The only thing better is if they had signed leases with Pugh clauses. I know numerous cases of land/mineral owners that did have vertical Pughs and got the opportunity to sign new leases for their deep rights. Not only a new bonus payment but in many cases a better royalty percentage. Live and learn. You're welcome. Good Luck, Skip

Permalink Reply by BirdDawg, plain ole' idiot on January 15, 2010 at 15:23

WSF is in no way a sister company to Will-Drill. Will-Drill formed some units in west Bienville Parish some time ago, but they had NO intentions of drilling a HA horizontal. They formed the units as a ploy to attempt to strongarm some co-owners.
In no way is WSF also known as Will-Drill.
I do know that Will-Drill farmed out most (or maybe all) of their interest to Questar, but I am not sure about that particular section.
I would consider WSF (Petrohawk) to be a very competent HA driller. Not so with Will-Drill, no shape form or fashion. But I can assure you, Will-Drill will NOT be drilling any HA horizontals. They have simply capitalized on their leasehold in the area (as in put the money in the bank).

Bottom line, WSF is NOT aka Will-Drill. They are aka Petrohawk. There is a WHOLE lot of difference here.

Permalink Reply by Missy on January 15, 2010 at 17:01

Bird Dawg,
I am curious about who the co-owners are. Are they investors? Also, what exactly does it mean when their interest is farmed out? Does Will-Drill profit at all from these leaseholds, which are farmed out to Questar, to be drilled into the HA?