Replies to This Discussion

Permalink Reply by Marc Stepman on July 15, 2010 at 12:41

I am familiar with Hunter they pulled the same stuff with me. They eventually plugged and abandoned mine.

Permalink Reply by william mitcham on July 29, 2010 at 2:26

YES, M&E HAS A GROUP OF LEASE BROKERS OUT THERE TRYING TO GET LAND OWNERS IN 20-21N-3W---TO GIVE
A 6 MOS EXTENSION TO LEASES WHICH ARE EXPIRING AT DIFFERENT TIMES WITH NO BONUS PAYMENT. THEY
PROPOSE TO RE-DRILL ATKINS WELL DOWN TO COTTON VALLEY SAND & PRODUCE IT THERE. LARGE LAND
OWNERS IN SECTION SEEM TO FAVOR THIS WHILE SMALL ONES WOULD JUST RATHER DO A TRADITIONAL
LEASE W/HEALTHY LEASE BONUS.

Permalink Reply by Marc Stepman on July 29, 2010 at 3:21

I would want to get a bonus. Sounds like they are trying to get investors and have a bunch of backing to do this. Still seems like an unusual deal. Something like this with these operators and my past experience makes me uncomfortable.

Permalink Reply by Greydog on July 29, 2010 at 3:31

"YES, M&E HAS A GROUP OF LEASE BROKERS OUT THERE TRYING TO GET LAND OWNERS IN 20-21N-3W---TO GIVE
A 6 MOS EXTENSION TO LEASES WHICH ARE EXPIRING AT DIFFERENT TIMES WITH NO BONUS PAYMENT. THEY
PROPOSE TO RE-DRILL ATKINS WELL DOWN TO COTTON VALLEY SAND & PRODUCE IT THERE. "

Is this reliable information? When you say "re-drill down to Cotton Valley Sand & produce it there" how much farther down are we talking about? The well is already at 10,000+.

Thanks

Permalink Reply by william mitcham on July 29, 2010 at 3:50

well is already drilled to smackover----they propose to come up the hole to cotton valley &
do whatever they do to produce it from that sand. well was originally permitted a cotton valley
well----why they tried to produce smackover I do not know. Just know that i want nothing to
do with extension w/o bonus as PineBelt is already making inquires in the immediate area.

thanks,

wcm

Permalink Reply by Greydog on July 29, 2010 at 4:35

When you say 6 month extension, the original lease term was for 3 years beginning January 2006. Received shut-in payments the last 2 years. They cannot hold the lease under the shut-in royalty provision for more than 2 years beyond the primary term. How/when would this new group of lease brokers go about getting an extension?

Also, the electrical log measurements show gas and condensate between 7,885' and 9,310'. Is that the Cotton Valley level to which you are referring? If so, is that the level where they propose to produce?

Thanks

Permalink Reply by william mitcham on August 5, 2010 at 12:22

Greydog,

It is my understanding that Jamex, which was planning on plugging the well, sold it for a song to M.E., which
is proposing to landowners in Section 20 T21N R3W, of which I am one, that they wish to try & complete the well at the Cotton Valley depth. Since lease & options are rapidly runing out M.E. is trying to get landowners to agree to a 6 mos. extension under terms of original lease & no lease bonus. I will not agree to this, as companies have already made overtures to me for our acreage in Sections 18, 19, 20, & 22. The unit well is Adkins # 1 on property that Hal Adkins or his wife one inherited from the Clemmie-Blondell Davis estate via Mr. Reese Simmons. Mr. Simmons was a prince of a gentleman, & we conversed often as to timber, oil & gas, & hunting leases. I made one overture toward Mr. Adkins regarding mineral lease offers & was treated like a
ba------ child at a family reunion. Judging from your knowledge of this area & the Bull Creek Field, you might know or have met Mr. Adkins--It might be Atkins--. If so would you please relate to him that people in this part of the country are from the "old school" and work with their neighboring land owers to protect them from timber theft, forest fire, non authorized hunters, & less than than adequate mineral proposals. We cooperate, not compete, & absentee land owners, like the owners of previously addressed well, are in harms way if their neighbors do not look out for their timber & mineral interests. Please try to make this connection if possible. Thanks!!

Permalink Reply by william mitcham on January 25, 2011 at 16:34

comment:  My on the site knowledge tells me that the  Adkins well (M.E. Operating)  is producing above 100,000

cubic feet of natural gas a day.  Do not know about fluid.  No one is going to get rich unless they have a whole bunch of acreage.  Section 20, Township 21 North, Range 3 West.

 

Permalink Reply by Herman (Chuck) Plonnigs, III on January 26, 2011 at 6:18

How would one extrapolate this production into “units” and value given the parameters of a 30 day month w/gas @ $4.00 per unit?

 

Just trying to clarify something.

 

Thanks

Permalink Reply by Herman (Chuck) Plonnigs, III on January 27, 2011 at 6:38

Never mind...I got it figured out.

 

A friend had informed me Mcf was a million cubic feet, but as I told her it was my understanding Mcf was a thousand cubic feet (M being the Roman number for 1,000).

 

That makes this production a bit more logical.

 

Thanks