I don't know the details like I should, but land man named James Taylor is taking leases halfway between Blanchard and Longwood on Blanchard Furrh Rd.  1,250 per acre and 22.5 royalty.  Said this is an upstart company anxious to drill.  Best news I've had in a while so I thought I'd share to see if any one else is getting offers.   

Tags: Blanchard, Lease, Longwood, offers

Views: 2611

Reply to This

Replies to This Discussion

There are several companies that are indicating an interest in that general area between I-20 and Longwood.  Comstock has applied for six long lateral Haynesville wells in Section 26 & 35 - 18N -16W.  Nadel & Gussman has applied for similar wells just south of the west end of Cross Lake.  The July mineral auction included two large tracts covering the mid-lake and west end parts of Cross Lake.  This is all early stage development signals.  Now we need to see if wells similar to those near the town of Greenwood can be drilled a little further north.

Sharon the name of the landman doesn't help us much.  What would be of value is to know the name of the company offering the leases and, if possible, who they are representing. And the "upstart" company anxious to drill.   Since there are no new version Haynesville wells that far north, the offer is reasonably "in the ball park" of what I would expect.

has anybody been asked to sign non disclosure agreements on terms of leases?  seems sharon was not one of them.

I know not signing any more leases without a firm 3 year term.  Not interested in waiting decades to see if maybe get well on the leases.

Either agree to drill within that term or go away.

I agree.

Good for you!   Best wishes for a big producer!

I'll let you know the company name soon

Comstock and Blue Dome are drilling in the Greenwood-Waskom Field now so both would be a possibility.  I think Blue Dome may be a Joint Venture with Nadel & Gussman as operator.  Ensight IV would be another possibility but I've seen nothing from them that far north.  A lot of us would like to see a new version well as far north as S8-18N-15W.  That is getting into an area of higher clay content that thwarted companies drilling the early Haynesville horizontal wells.

I've not run across a lot of non-disclosure lease clauses in my career.  The fact that lessees are no longer required to record a full lease in the public record may have had something to do with that.  Lessees do regularly record a memorandum of lease with the property description and the term of the lease.  I don't have a problem with three year lease with a two year option to extend.  Or, to a four year lease term.  The age of unconventional reservoirs has caused the industry to be more careful with short term leases.  The Haynesville Shale play taught a number of companies first hand the potential problems with three year lease terms when the play area expanded and they had leased far more acres than they could comfortably drill time and budget wise.

There have been some over the top leasing programs that IMO are outside of the realm of what is reasonable.  During the Lower Smackover/Brown Dense play many land owners agreed to leases with a four year lease term and a four year option to extend.  Of course the vast majority of those leases expired without the extension option being exercised.

Yep, Memorandum of lease.

What in particular do you wonder about those wells, Kathy?

The wells to which you refer are just horizontal Haynesville wells (Carthage Field in your part of Texas).  The increase in interest in your part of E TX is owing to the new well designs that make the wells more profitable and the fact that there are a number of new companies with aggressive drilling programs. 

Keep in mind that there is no such thing as an economic vertical Haynesville Shale well.  The Haynesville formation varies in lithology across it's arc from central Texas to the panhandle of Florida.  In some locations the Haynesville is sand and in some it is shale.  For purposes of drilling economic wells, one or the other but not both.  Where the Haynesville is sand (and contains commercial volumes of hydrocarbons), vertical wells are capable of producing profitable volumes of liquids and/or gas.  There are many hundreds of long lived, shallow decline vertical Haynesville wells in parts of N LA.  They are sand wells and many miles removed from the shale portion of the Haynesville shale fairway.  The Haynesville sand is a conventional reservoir.  The Haynesville shale is an unconventional reservoir.

The Comstock wells drilled just south and north of Greenwood, LA that we have discussed have revived interest in this region because the new well designs have improved the volume of recoverable gas and driven down the cost per mcf to produce it.  Companies can make a reasonable return of their investment.

Directional wells are "off-the-vertical" wells, not horizontal.   The horizontal wells are identified with an "H" after the name and may be Haynesville or Cotton Valley wells.  In Harrison County, the non-"H" wells currently are Travis Peak completions and may be directionally drilled.  You are correct however the vertical wells have nothing to do with the horizontal Haynesville wells that Comstock and others are drilling in near E TX.  Those are wells drilled in unconventional reservoirs.  The Travis Peak is a conventional reservoir.

Sharon, we live in Duke Estates and about a month ago we got a letter from lawyers representing Mammouth Minerals out of Houston. We have not been approached by a land man yet but we did get printouts of areas they were interested in for their proposed 12 units. our property is included. I don't think the $$ you were offered is very good at all but the royalty % does sound good. I think I would have to say no on the $$ because it they do drill near your property, your property value goes down, and you just never know what can happen to your land once they pull out. Heck, 30 years from now, it could be one giant sink hole and your property is worth zero. I think they will have to tempt me with a lot more than $1250 an acre. Royalties may not amount to much every month, if they pay at all and that $1250 per acre is all you get for your property devalued. The last landman screwed us by putting a lien on our property and we had to go down to the courthouse several times to get his name off our property. Not to mention we had to find the company to get them to take the lien off. I would also insist on a term limit of no more than 3 years that they can hold your land in limbo. Just my opinion. 

RSS

Support GoHaynesvilleShale.com

Not a member? Get our email.

Groups



© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service