Watch Skip Peel's Interview with the University of Minnesota on the Haynesville Shale

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Great interview.  Thanks for posting this for those of us that try and stay on top of what is going on with the Haynesville Shale.  As a property owner, its nice to have some sources of information available to us.

Thank you for the kind word, Ed.  Keith posted my interview to the website and didn't tell me ahead of time so it was a surprise.  The University of Minnesota contacted him and he referred them to me.  The interview was some weeks ago and I had forgotten that he planned to ask for permission to use it here on GoHaynesvilleShale.com.  Please share the website with anyone you know who might find it of value.

Pardon the bump.  Some new members had difficulty finding the interview because it moved off the main page.  When a discussion rotates off the main page of the website, you can find it by going to the bottom right of the main page and click on  View All.   

 Then you can scroll back through all the previous discussions.

Thank you so much for all this information.  Very enlightening.

You're welcome, Ann.  The O&G industry works to keep mineral owners - lessors and the unleased - in the dark.  They want people to just take the money and not ask any questions.  O&G companies have some of the worst customer service policies among all major US corporations.  It always pays in the long run to solicit professional help before signing on to a contract that could last for generations.

Understanding your lease and options are just part of the equation in the oilfield. Having an idea of what the subsurface / geology looks like in your area is also important.

Not all areas are created equal geologically

Even in an unconventional play where the rock is generally productive across a large continuous area, there are areas that are not productive or so much less so that they are not economic to drill.  The major exception here on the Louisiana side of the fairway is what I have come to call the Logansport Low Porosity Zone.  This is roughly defined as 11 North - 16 West eastward to the western half of 11 North - 14 West.  In the early years of the play Chesapeake drilled a number of HA horizontal wells in sections scattered across this area.  Those wells were only a quarter to a third as productive as surrounding sections using the exact same well and completion design.  Now over sixteen years later, this area or zone is largely undrilled.  This can be confirmed by a SONRIS data search.  Then there are areas with faulting that may limit or exclude horizontal wells.

You're so right there, Skip, on all points. My late husband and I leased our little 3 acres in DeSoto Parish in 2006 for $100 bonus and 1/8 royalty. This was before the Haynesville and it didn't even occur to us to question or negotiate. I wonder about selling my mineral rights since I'm stuck in such a bad lease.

Pam, I am in the process of helping clients sell minerals under an old one eighth lease.  All minerals are unique and it is impossible to make a blanket statement of value, except one.  Minerals with proven Haynesville Shale have never drawn such high offers at sale.  There are two reasons for this - more competition from mineral companies and a shrinking number of Haynesville acres remaining to be acquired.  Location is important as is the number of wells yet to be drilled.  Many Haynesville lessors are under one eighth royalty leases.

Thanks, Skip. If I were to sell, would my lease transfer, or would it terminate and the new mineral owner get to negotiate?

A lease remains in force as long as there is production.  Some short term cessations in production may be covered by lease terms but lengthy cessations cause the lease to expire.  If you have current production, a buyer is not only buying your mineral rights, they are buying your lease.  We could get into the weeds regarding legal issues such as "production in paying quantities" but it sounds like you have continuing production and royalty payments although they may not be monthly depending on your acreage.

Yes, I'm hbp. I was just wondering basically how that works. Thanks!

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