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Permalink Reply by Skip Peel - Mineral Consultant yesterday

Rick, there are several reasons for mineral companies to send offers.  The first is an application for alternate unit wells.  These are spacing requests that once approved are effective indefinitely unless superseded by a subsequent application.  Notice letters are required for these applications so mineral owners evidenced in the public record would know.  The follow up step is a well permit to drill which does not require notice.  Mineral buyers get real interested when they see permits but mineral owner would not be aware unless they are checking SONRIS regularly.  Permits to drill are effective for six or twelve months.  Those six month permits get buyers really interested especially if it is for a group of wells.  Buyers hope that low production and royalty income from old wells lulls mineral owners into thinking they won't get any more wells.  Some buyers still employ the old come on of offering a multiple of months based on current monthly  income which completely ignores the fact that for many there are more wells in their future.

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Permalink Reply by Rock Man yesterday

Another good reason to get an expert opinion from O&G people about one's assets and minerals

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Permalink Reply by lee yesterday

3-13-13 sorry for the delay my mother passed and i have been out of town.

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Permalink Reply by Skip Peel - Mineral Consultant yesterday

Sorry to hear it, we offer our condolences.  Here are the wells producing from Section 3 - 13N-13W.  They are all early wells which means to two things.  One they are under stimulated compared to current completion designs and are candidates to be re-fracked and two they have left un-fracked the north and south 330' of rock because of setback requirements for H wells.  If EXCO can drill a multi-section well from adjoining sections to the north and south, the company could produce that rock.  Mineral buyers would pass on this section as they would see it as fully developed.  It is not.  Section 3 is within the best contour line of the Petrohawk Porosity-Feet map.  Although it is some of the most productive Bossier shale, it is likely to have to wait for better natural gas prices to be developed.  The sixty four thousand dollar question is what price makes the Bossier a profitable target?  That is unknown at this point other than current prices are far too low.  I suggest that you hold your mineral rights for a few years to see what transpires.

239839	10		E183	HA RA SUBB;BRASCH FAMILY 3	001
247831	10		E183	HA RA SUBB;BRASCH FAMILY 3	002-ALT
247756	10		E183	HA RA SUBB;RINAUDO 3	001-ALT
247754	10		E183	HA RA SUBB;TEAL 3	001-ALT
248496	10		E183	HA RA SUBB;TEAL 3	002-ALT
247832	10		E183	HA RA SUBB;BRASCH FAMILY 3	003-ALT

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Permalink Reply by lee yesterday

and 2-13-13

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Permalink Reply by Skip Peel - Mineral Consultant 23 hours ago

Section 2 is undeveloped for the Haynesville shale but Chesapeake has a Field Order for 5 HC wells to produce from Section 35 to the north and Section 2.  Chesapeake permitted the wells but allowed the permits to expire in July.  The Field Order is in effect and Chesapeake can re-permit those wells as long as they conform to the lateral slots in the Field Order.  Chesapeake would rather drill the wells late this year or sometime in 2025 hoping for improved gas prices.

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Permalink Reply by Rock Man yesterday

Lee, very sorry to hear about your mom.

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