Replies to This Discussion

Permalink Reply by john hamilton on August 21, 2011 at 19:05

Hey Skip, Our family owns 250 acres in section 033, 16n-13w of Elm Grove.  We originally signed our lease with Camterra and since Exco has taken over the payment of royalties which only come from well #1 (vertical well) and small checks.  2 horizantal wells were then attempted by Exco which lead to well control problems on well #2 and an expired permit on well # 3. Do you think this unit will ever see a horizantal well or Is that it for us?  We also leased 40 acres in section 034, 16n-13w. Any thing on the horizon in this unit?                 Thanks.

Permalink Reply by Skip Peel - Mineral Consultant on August 22, 2011 at 2:31

The Camterra well permit is for a horizontal completion.  You might wish to contact EXCO for an explanation.  Even though EXCO may be paying royalties on the wells, Camterra still holds the unit order for this section, and others in the township.  I had hoped we had seen the last of Camterra.

Permalink Reply by john hamilton on August 24, 2011 at 23:32

Will those of us in section 034-16n-13w, receive royalties for

well #243449?

Permalink Reply by Skip Peel - Mineral Consultant on August 25, 2011 at 1:40

No.  The surface location is in irregular Section 38 but the well will be drilled into and produce from Section 25 as indicated by the well name.  Mineral interests of record in Section 25 will receive any royalties.  john, I wouldn't want Camterra drilling a well I had an interest in as their track record is not good.

Permalink Reply by john hamilton on August 25, 2011 at 2:01

thanks skip, do you think that new drilling in elm grove by camterra,

is a sign that other  units such as, 033-16n-13w and 034 -16w-13w in

elm grove, might be close to adding successful horizantals any time soon?

Permalink Reply by Skip Peel - Mineral Consultant on August 25, 2011 at 2:15

Section 33 has a producing Haynesville well so no need to drill another as that one is holding the leases in force at least to the depth drilled and/or produced depending on the language in the leases.  Section 34 has a producing Lower Cotton Valley well so once again it depends on the lease language.  If there are no depth clauses, the existing well can hold the leases in force.  If there are depth clauses and the leases are still in their primary term, a Haynesville well would have to be drilled to hold the deeper depths.  The fact that Camterra has permitted this well would tend to indicate that the primary lease term is nearing expiration, EXCO has no intentions to drill a Haynesville well in Section 34 and Camterra is planning to drill this well to hold their deeper rights.  All in all, not the best of situations for lessors.