Replies to This Discussion

Permalink Reply by Two Dogs, Pirate on January 4, 2011 at 17:09

Section 34 ain't the whole story, we would need to know the Township and Range in the property description.

Permalink Reply by CBT on January 4, 2011 at 17:20

34-10-11.  Thanks Two Dogs!

Permalink Reply by ken hatcher on January 4, 2011 at 18:34

Leasing in Sabine seems to be confined recently to Zwolle/Ebarb lake area. Hopefully you will get another offer.

Permalink Reply by Henry on January 5, 2011 at 0:26

I'm confused.  Sonris says a well was spud in September 2010 in 34-10-11.  Benton Johnson 34H, #241852.  Driller is EnCana. Be thrilled you have EnCana for a driller.

Permalink Reply by CBT on January 5, 2011 at 2:28

Thanks for that Henry!  We'll definitely have to check out Sonris seeing that we've never been contacted.  We have a fairly significant amount of acreage if the area has been unitized... 

Permalink Reply by Skip Peel - Mineral Consultant on January 5, 2011 at 3:07

S34 = 10N - 11W is under HA Unit Order to SWEPI.

Permalink Reply by Henry on January 5, 2011 at 3:26

CBT,

You are only contacted (by mail) when a unit is formed.  No notice is given when the well is permitted or when drilling begins.

Permalink Reply by CBT on January 5, 2011 at 4:17

Henry and Skip-

 

Your info. has been really helpful!  I, in my novice green state, sure could use some of your wisdom regarding how this all works! 

 

We have not been directly contacted about being unitized.  If well #241852 is in our Section, Range, and Township (34-10-11) are we automatically unitized?  We own 120 acres so it would be fairly significant to the 640.  Should we start seeing royalties?  How does well #241852 effect us?  Thanks for any Leasing 101 you can provide...

Permalink Reply by Skip Peel - Mineral Consultant on January 5, 2011 at 4:28

Something's up, CBT.  No company is likely to be drilling a unit (section) with 120 acres unleased.  And the chances of being left off an Interested Party list for notification of a unit application is slim and practically none.  The company would know if there was 120 acres unaccounted for.  There is a well from 2007 shown as Shut In, Code 36 but also listing recent production in your section.  Either this previous lease holds the rights to all depths and you are covered by it or the operator does not think you own the mineral rights under your 120 acres.  I suggest that contact SWEPI ASAP.

Permalink Reply by Les Bamburg on January 5, 2011 at 4:35

CBT, the unitization process is separate and independent of drilling a well.  Shell formed a Haynesville Unit for Section 34 and you should have been notified regarding both the pre-unitization and unitization hearing.

 

EnCana has drilled a Haynesville Shale well in Section 34 that has not yet been completed and placed on production.  Because EnCana and Shell are in a joint venture it is common for EnCana to drill wells in a Shell operated unit.

 

EnCana, Benton Johnson 34 #H1 Well, Serial #241852, S34-T10N-R11W

 

S34-T10N-R11W, HA RA SUD Unit, Shell, San Miguel Creek Field, Sabine Parish

Permalink Reply by CBT on January 5, 2011 at 4:49

Again, thanks for all the info!  Your responses have created a whole new direction in our family's thinking!   Does anyone have an idea when this section was unitized? 

 

Back to Leasing 101, given our land is "now" unitized and a well has been drilled in our section, what does this mean? How soon should we start to see royalties? And should we assume to hear from the company re royalties or production?   

Permalink Reply by Skip Peel - Mineral Consultant on January 5, 2011 at 5:32

CBT, use Les. B.'s link below.  Click on it.  Then use the down arrow at the top left to go to Page 4.  Look at the plat of the section with the names of the owners.  Do you see your family name listed?

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