Replies to This Discussion

Permalink Reply by GoshDarn on September 3, 2013 at 12:20

John:

2008, huh?

That must've been a sweet bonus on 250 acres.

Did ya'll hit the jackpot and move the ticker over $10,000 an acre (or even $5k higher) and get 1/4 royalty and a free royalty clause?

If so, then the bonus alone was a huge win-win.

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Permalink Reply by Skip Peel - Mineral Consultant on September 3, 2013 at 13:53

The only producing well in your section is S/N 237795/LCV RA SU115/DEBROECK 33.  It has depleted to the point that EXCO might have a difficult task to defend a suit to terminate the lease under the state statute regarding Production In Paying Quantities.  Go see an experienced O&G attorney and see what they think. At the current price of natural gas the production may not be sufficient to cover the cost to operate the well.  If not now then likely sometime in the very near future.

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Permalink Reply by john hamilton on September 3, 2013 at 18:18

If Exco was planning on terminating the well and abandoningthis unit, might another company be interested? Or, Is it justa part of the shale which contains minimal gas? SurelyBig Oil knows if there is an area in our section whichis worth drilling.  Hell Debroeck 4 next door hasremained strong.  I guess life isnt fair when a couple of feethave determined if Im a millionaire or just a man whowill never see another dime from land my familyoriginnally leased for 5000 an an acre.

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Permalink Reply by GoshDarn on September 3, 2013 at 19:53

John:

My family's been leasing farmland in Elm Grove Field in Bossier Parish for about 100 years, going back to the very first oil boom.  There are wells named after my grandparents on SONRIS going back to the early 1900's, i.e., with state well numbers delineating them as some of the very first oil wells in La.

What I've learned over the years is that a landowner never knows what's going to happen per the various formations and the ever-evolving technology.

Yes, sirree.  Those early oil wells played out a long, long time ago; and probably most thought the formations had been sucked dry.

But little did they know how deep the drill bit would eventually go.

Lesson learned.

 

 

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Permalink Reply by Skip Peel - Mineral Consultant on September 4, 2013 at 1:52

john, there's nothing wrong with the Haynesville Shale in your section.  You're problem, originally, was being leased to Camterra.  Your problem now is that EXCO will ride this well down until they are ready to drill a Haynesville well unless someone creates a situation where they need to drill in order to keep the lease rights. 

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Permalink Reply by tc on September 4, 2013 at 2:39

At least EXCO likes to drill Haynesville wells even at these low NG prices, that more than can be said for most of the original Haynesville operators.

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Permalink Reply by Chris on September 5, 2013 at 4:47

Sounds like your lease may be HBP to a marginal well? If that is the case they have no reason to drill anything with gas prices so low and the lease already held.

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