Replies to This Discussion

Permalink Reply by Tree Farmer on July 14, 2010 at 15:48

Thank you. That clarifies the issue for me. Back in the 60s there were attempts in Union Parish to force oil from the sands using natural gas and then saltwater. I do not believe either were very successful. There exists several oil fields in the Parish dating back to the 40s. One is the Ora Oil Field and another is the Truxno Field. The Oral field is still producing and the wells are extremely shallow by todays standards (2500-3000 feet). You said that the Smackover Brown Dense were also conventional which means that dry holes are likely there as well (as I understand your definitions). I would assume then that what companies are currently offering is a reasonable offer especially since there has been no activity in Union Parish to speak of since the 1970s. I have found your responses very useful. Thank you for sharing. One other thought, I have been on this site for a few weeks and the activity has really dropped on the Union Parish site. Does that likely mean most of the land in Union Parish has been leased. I also wonder why other landsmen are not found on the website or prehaps you are the only one that has revealed himself to be a landsman.

Permalink Reply by Tree Farmer on July 14, 2010 at 15:51

One other thing you did not speak to. The benefit of being in a unit without having leased. Do you get nothing or do you actually gain more by not being part of the lease but perhaps part well owner (if that is what a person who does not lease their property becomes).

Permalink Reply by Skip Peel - Mineral Consultant on July 14, 2010 at 16:01

Search the GHS site archives for numerous discussion threads for unleased mineral interest (UMO/UMI).

Permalink Reply by Skip Peel - Mineral Consultant on July 14, 2010 at 15:58

There are a number of landmen who are regular GHS contributors. Not all state so in their site names as that is their prerogative. Pay attention and they will be obvious, sooner or later. The bulk of them have been here for 18 to 24 months. The advent of horizontal drilling and hydraulic fracture stimulation will likely make formations other than the Haynesville and Bossier Shales productive. The Brown Dense may be sufficiently "tight" (low permeability) as to be a good target for those new technologies. That has not been proven but is likely. Lacking completion results from SMK (Brown Dense) horizontal wells, it is an unknown whether the potential is real. Time will tell. In the meantime, good lease terms other than bonus are the best business imperative when considering a lease offer.

Permalink Reply by Tree Farmer on July 14, 2010 at 16:19

How does hydraulic fracture work? Is it anything like what I described taking place in the 60s when they would pump natural gas then ignite it to attempt to open space for the oil to pool in?

Permalink Reply by Tree Farmer on July 14, 2010 at 16:22

I also saw where a well around Marion was to be shut-in because of the amount of hydrogen sulfide gas. How much gas other than Natural Gas is acceptable in a well for it to be productive?

Permalink Reply by Skip Peel - Mineral Consultant on July 15, 2010 at 1:26

Nope. Water is forced from the wellbore through the perforations to crack open the HA formation and release the gas. The frac fluid carries proppant, usually sand, to assist in holding the cracks open when the well flowsback the fluid. There are a number of videos in the archive that show the frac process.

TF, I'm not sufficiently knowledgeable to answer your question about H2S. Sorry.

Permalink Reply by Marc Stepman on July 15, 2010 at 2:52

I have land around Marion and have not received any offers. As Skip said time will tell on the SMK Brown Dense. Let a few wells get going that are good and I think it will pick up.

Permalink Reply by Skip Peel - Mineral Consultant on July 15, 2010 at 3:09

Marc, I think it highly likely that there will be some economic SMK horizontals drilled in the near future. IMO, the geology question we should be asking is, If the Brown Dense zone of the Smackover Formation proves to be an economic target, will it be so over a relatively large and contiguous extent similar to the shale portion of the Haynesville? Or will it be non-contiguous requiring much exploratory drilling to determine the productive areas. If the Brown Dense Play is contiguous in extent and petrophysical properties (no or darn few dry holes), the lease rights should be comparable to the value of the Haynesville Shale. Maybe we can get some of the members who are geologists to lead that discussion.

Permalink Reply by shaleshaleshale on July 15, 2010 at 9:31

marc,

i too have land around marion and have not heard of any leasing at this time. i know people who have received leases from 2 different outfits in and around bernice up to spearsville however...

Permalink Reply by Marc Stepman on July 15, 2010 at 11:20

Sounds like they are a ways out of Marion. We will have to see how the SMK Brown Dense does as well. I do not live in the area let me know if they get close. Did you see the new Smackover Network?

Permalink Reply by Tree Farmer on July 16, 2010 at 8:50

What are people getting as dollars per acre for shut-in royalty and for surface damages due to well and battery sites, pipelines, flowlines, pits etc.

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