Questions on lease expiring in a few months

We’re located in Sec. 12 T11N R12W Desoto Parish.  Our 3-year lease is expiring in September with the 2-year option.  The company that we are leased with has not drilled, but another company had a hearing for a permit in March 2010, and they haven't drilled either .  Encana is drilling a well in the lower southwest corner, but bores into section 13, and we were told they will receive the royalties.  Does this mean that we are force pooled or unitized?  What affect will this have on the lease renewal?  Also, this section falls in the lignite mine area.  Could this be the reason no one has drilled yet?  If the company renews our lease for another 2 years, will it be at the same amount of money that was paid for the 3-year lease?  Can this company allow the lease to expire after 3 years and come back later and lease again for a different amount?

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Permalink Reply by Two Dogs, Pirate on May 6, 2011 at 14:27
Have you received unit orders on section 12? Whoever the company that has the lease rights will probably drill a horizontal into section 12 from the same pad they drilled into section 13  before the renewal date so as to not have to pay for the option to extend. You are not forced pooled unless the unit order says that you are forced pooled. They have to notify you of any forced pooling of your property.
Permalink Reply by Nancy Taylor Ds2 on May 7, 2011 at 12:26

We didn't receive anything on section 12.  Just ran across in on sonris.  Swepi is drilling.  Last well information reported 3/11/11 WAITING ON ANOTHER RIG TO DRILL HORIZONTAL.

Permalink Reply by FormerCompanyMan on May 9, 2011 at 2:40

I tried to look up your well this morning but Sonris was acting up.  When it decides to cooperate, look at the data files and try to pull up the daily files.  If any type of operations have begun on the tract - and Ches. can show that these operations continued without any significant interruption then your lease will likely be held by production - assuming they drill and complete a viable well.

 

If all that doesn't happen during the primary term of the lease, then it sounds like you sit in a nice position.  Read the terms of the option - if it states something like - lessee herein is granted the option to extend the primary term of this lease for an additional two year period upon the same terms as found in the original lease - then the lessee will likely have to pay you a bonus equal to the original price per acreage for the original lease.  However, more likely, they will approach you with a much lower proposal since the lease boom is over.

 

Hope that helps - happy to answer any other questions but I think all of yours have been addressed.

Permalink Reply by Nancy Taylor Ds2 on May 9, 2011 at 14:39

Thanks, I don't see it on Sonris yet.  Where do I go to look at the data files and daily files?

 

Permalink Reply by Henry on May 8, 2011 at 0:19

Nancy,

Today's Shreveport Times lists a permit for your well.
Permalink Reply by Nancy Taylor Ds2 on May 8, 2011 at 8:46

Henry,  I found the following information:

Chesapeake Operating Inc, ha ra su53; Nabors 12-11-12h, 001, Sec. 12, T11N, R12W, Red River Bull Bayou, 17500' MD 12500' TVD, Haynesville RA

Can anyone explain this to me? 

Thanks

Permalink Reply by Henry on May 8, 2011 at 22:39

Nancy,

I'll try.  This says that Chesapeake will be drilling the well for this section.  Chesapeake always puts the name of the section that is being drained in the name of the well.  It is called "Nabors 12-11-12h, 001" because the actual surface location will be on the Nabors' family property -- there is a small tract belonging to them on the southern edge of the section.  It will drain 12-11-12, and the 001h means it is the first horizontal well in the Haynesville formation.  The field you are in is called "Red River Bull Bayou."  This is a very large field, and has been a very good one for the Haynesville Shale.

 

Your section was originally unitized by Petrohawk.  I have no idea why CHK is drilling.  But these things happen.  The permit is probably good for one year.  But I would expect drilling to begin much sooner - probably before your lease expires.

 

You are in a good area -- CHK and SWEPI have produced several wells with Initial Production Rates over 15 mmcf/day within 5 miles of you.  Good luck.

Permalink Reply by buckmaster on May 9, 2011 at 15:44
Nancy there was a rig moving over that way yesterday .I think it was the Trinidad  Rig that was down here by Chemard Lake
Permalink Reply by Nancy Taylor Ds2 on May 10, 2011 at 7:31
There's a rig already in sec. 12, but they're drilling into sec. 13.  The last scout report stated they were waiting for the horizontal rig.  Could that have been a horizontal rig?
Permalink Reply by Nancy Taylor Ds2 on May 16, 2011 at 14:40

Talked to someone with Chesapeake today.  Drilling is scheduled for May 19th.

 

Permalink Reply by astrofan on May 18, 2011 at 4:04
Top of the morning to all Does anyone know what kind of production they have been getting from the North Grand Cane field?
Permalink Reply by Skip Peel - Mineral Consultant on May 18, 2011 at 4:34

Your question is far too broad as there is a good bit of variance in all fields.  A comparison by section-township-range is more likely to give you a number with some value however there aren't that many completed wells in the field so use the S/N at the beginning of each well listing and look up the completion data on SONRIS Lite.

 

Well Ser

Well Name

Well Num

Status

Class

Class Type

API Number

Org ID

Permit Date

Sect

Tshp

Rng

Parish

Mer

237650

HA RA SUB;DESOTO OIL&GAS TR 17

001

10

17031243800000

B313

05/09/2008

017

12N

14W

16

W

 

Well Ser

Well Name

Well Num

Status

Class

Class Type

API Number

Org ID

Permit Date

Sect

Tshp

Rng

Parish

Mer

237677

HA RA SUC;BILLY JOE ANDREWS 33

001

10

17031243880000

B313

05/15/2008

033

13N

14W

16

W

 

 






























 

Well Ser

Well Name

Well Num

Status

Class

Class Type

API Number

Org ID

Permit Date

Sect

Tshp

Rng

Parish

Mer

238883

HA RA SUB;DESOTO OIL&GAS TR 17

002-ALT

10

17031245630000

B313

10/06/2008

017

12N

14W

16

W

 

Well Ser

Well Name

Well Num

Status

Class

Class Type

API Number

Org ID

Permit Date

Sect

Tshp

Rng

Parish

Mer

239152

HA RA SUD;RICHARDSON ETUX 27

001

10

17031243900000

B313

12/02/2008

027

13N

14W

16

W

 






























239400

HA RA SUF;GIBBS 3-12-14 H

001

10

17031246590000

C084

02/02/2009

003

12N

14W

16

W
































 

Well Ser

Well Name

Well Num

Status

Class

Class Type

API Number

Org ID

Permit Date

Sect

Tshp

Rng

Parish

Mer

239442

HA RA SUG;GIBBS 2-12-14 H

001

10

17031246740000

C084

02/11/2009

002

12N

14W

16

W

 































 

Well Ser

Well Name

Well Num

Status

Class

Class Type

API Number

Org ID

Permit Date

Sect

Tshp

Rng

Parish

Mer

239590

HA RA SUT;FORD FMLY TR LLC 29H

001

10

17031247190000

B313

03/23/2009

032

13N

14W

16

W

 

Well Ser

Well Name

Well Num

Status

Class

Class Type

API Number

Org ID

Permit Date

Sect

Tshp

Rng

Parish

Mer

239594

HA RA SUH;CHAFFIN 34-13-14 H

001

10

17031247210000

C084

03/24/2009

034

13N

14W

16

W

 

Well Ser

Well Name

Well Num

Status

Class

Class Type

API Number

Org ID

Permit Date

Sect

Tshp

Rng

Parish

Mer

239637

HA RA SUI;COLE 9-12-14 H

001

10

17031247370000

C084

04/06/2009

009

12N

14W

16

W

 

Well Ser

Well Name

Well Num

Status

Class

Class Type

API Number

Org ID

Permit Date

Sect

Tshp

Rng

Parish

Mer

239668

HA RA SUO;DESOTO PJ 26 H

001

10

17031247490000

P251

04/16/2009

035

13N

14W

16

W

 

Well Ser

Well Name

Well Num

Status

Class

Class Type

API Number

Org ID

Permit Date

Sect

Tshp

Rng

Parish

Mer

239709

HA RA SUM;MEREDITH ETUX 36 H

001

10

17031247590000

P251

04/22/2009

025

13N

14W

16

W

 

Well Ser

Well Name

Well Num

Status

Class

Class Type

API Number

Org ID

Permit Date

Sect

Tshp

Rng

Parish

Mer

239711

HA RA SUL;DESOTO PLCE JRY 35 H

001

10

17031247600000

P251

04/23/2009

026

13N

14W

16

W

 

Well Ser

Well Name

Well Num

Status

Class

Class Type

API Number

Org ID

Permit Date

Sect

Tshp

Rng

Parish

Mer

239753

HA RA SUQ;CHK LA MIN 12-12-14H

001

10

17031247730000

C084

05/05/2009

012

12N

14W

16

W

 

Well Ser

Well Name

Well Num

Status

Class

Class Type

API Number

Org ID

Permit Date

Sect

Tshp

Rng

Parish

Mer

239825

HA RA SUK;HOLLOWELL 16-12-14 H

001

10

17031247940000

C084

05/28/2009

016

12N

14W

16

W

 






























 

Well Ser

Well Name

Well Num

Status

Class

Class Type

API Number

Org ID

Permit Date

Sect

Tshp

Rng

Parish

Mer

239938

HA RA SUV;NABORS PROP 1-12-14H

001

10

17031248220000

C084

06/25/2009

001

12N

14W

16

W

 

Well Ser

Well Name

Well Num

Status

Class

Class Type

API Number

Org ID

Permit Date

Sect

Tshp

Rng

Parish

Mer

239973

HA RA SUP;EVA CULVER BURNLEY 4

001

10

17031248320000

B313

07/10/2009

004

12N

14W

16

W

 

Well Ser

Well Name

Well Num

Status

Class

Class Type

API Number

Org ID

Permit Date

Sect

Tshp

Rng

Parish

Mer

240054

HA RA SUJ;EL PASO MGMT INC 10H

001

10

17031248510000

E168

07/29/2009

010

12N

14W

16

W

 































 

Well Ser

Well Name

Well Num

Status

Class

Class Type

API Number

Org ID

Permit Date

Sect

Tshp

Rng

Parish

Mer

240571

HA RA SUE;EL PASO MGMT INC 15H

001

33

17031249940000

E168

12/14/2009

015

12N

14W

16

W

 

Well Ser

Well Name

Well Num

Status

Class

Class Type

API Number

Org ID

Permit Date

Sect

Tshp

Rng

Parish

Mer

241173

HA RA SUY;GILLIAM 23-13-14 H

001

10

17031251570000

C084

04/15/2010

023

13N

14W

16

W

 

Well Ser

Well Name

Well Num

Status

Class

Class Type

API Number

Org ID

Permit Date

Sect

Tshp

Rng

Parish

Mer

241387

HA RA SUZ;LACNY 24-13-14 H

001

10

17031252200000

C084

05/20/2010

024

13N

14W

16

W

 






























 






























 

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