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Started By
Message
re: Haynesville Shale
Posted on 7/24/08 at 11:19 am to insomniacnla
Posted on 7/24/08 at 11:19 am to insomniacnla
okay
This post was edited on 11/1/08 at 9:17 am
0
Posted on 7/24/08 at 11:21 am to TigerDog83
quote:
Basically a lease is an agreement that entitles the landowner to no expenses and 12.5%-25% of the produced product which removes the risk from the equation.
I'll add to this that consider what your 'greed' gets you.
Let's say you own 4 acres. If you opt for 'pooling', then you would *potentially* get 4 * 100% royalties - drilling costs. If you get $100/yr in royalties per acre, that would be $400 - [drilling costs plus whatever other roadblocks the production company throw up].
So you're looking at something LESS than $400 here..and possibly significantly less..and delayed by years (lost interest $$$).
VS
On the other hand, you settle for a $50/acre lease + 25% royalties. Given the above assumptions, you would get 25% * 4 (acres) or 100% royalties for every 4 acres you own.
The math here is $50 * 4 = $200 (lease) + ( $100 * 4) / 4
Total $300.
I know this is a stupid example not using real numbers; my only point was to show that a nice fat 25% royalty + fat signing bonus is not a bad deal...
This post was edited on 7/24/08 at 11:24 am
Posted on 7/24/08 at 11:22 am to Flop
quote:
People want to talk about the Haynesville Shale, not this BS you two keep posting. Bite me!
ouchies. Someone's upset about the Plain Dealing HS sand this morning..
Posted on 7/24/08 at 11:29 am to CAD703X
he has the haynesville sand in his........
Posted on 7/24/08 at 12:11 pm to CAD703X
Nobody cares about Dr. Death and some old record store in Shreveport. Hell, talk about something interesting like Ernie Ladd, or The Samoans, Gary Hart. Come on people!! Dr. Death?? Give me a break.....
Posted on 7/24/08 at 2:35 pm to ElmGrove
quote:
5) It concerns me because I'm advising family on about 50 acres down near Ashland . . .
Concerning your family's 50 acres in Ashland.....Chesapeake just decided to not execute their two year renewal option on my lease in Ashland. I know of others that had leases with Chesapeake in Ashland that weren't renewed also. I guess we now have a clearer picture where the shale ends to the east.
Posted on 7/24/08 at 2:56 pm to Big Red
quote:
Concerning your family's 50 acres in Ashland.....Chesapeake just decided to not execute their two year renewal option on my lease in Ashland. I know of others that had leases with Chesapeake in Ashland that weren't renewed also. I guess we now have a clearer picture where the shale ends to the east.
It's not that the shale isn't there but more likely about how deep the shale gets if it is present around that area. I saw a log the other day in Natch parish that appeared to have the zone, but at 17,000 feet the economics probably don't support trying to produce it. The new map released by the Conservation Department (odd that it is considered new on the websites when I viewed it over two months ago) makes no sense. Most of those eastern parishes aren't going to be productive and if they are, how deep will the shale be? It looks good on some ambiguous map to a landowner, but that doesn't put one in the play. The Cotton Valley is already at 15,000' - 16,000' in Jackson Parish, so that puts the shale (if it's even present which is questionable at best) at close to 20,000' deep or more. Of course the state is always the last to know of what is going on so it's not surprising.
Posted on 7/24/08 at 3:06 pm to TigerDog83
quote:
Jackson Parish
I've talked with a guy who has drilled Cotton Valley wells in Jackson parish. They are pushing technology/profitability on 16,000 ft. Cotton Valley (ie non horizontal) wells that deep. He thought it'll be years before the technology is available to do shale wells at the 19,000+ mark.
Posted on 7/24/08 at 3:13 pm to LSU0358
quote:
I've talked with a guy who has drilled Cotton Valley wells in Jackson parish. They are pushing technology/profitability on 16,000 ft. Cotton Valley (ie non horizontal) wells that deep. He thought it'll be years before the technology is available to do shale wells at the 19,000+ mark.
Yeah, I'd say that's probably right, and that assumes there is even any shale there which there probably isn't. Those CV wells at Vernon have real high bottom hole temperatures and are high pressure. Those factors sometimes can combine to make using any kind of down hole tools difficult, such as some of the Anadarko deep Bossier wells in East Texas. Imagine what the extra 3,000' or 4,000 feet would do to that.
This post was edited on 7/24/08 at 3:18 pm
Posted on 7/24/08 at 3:23 pm to TigerDog83
TigerDog83,
I keep reading press releases (CHK & PXP trade) where these wells will be drilled on 80 acre spacings. I don't imagine they will drill 8 wells per section. They now drill on unit well with a 3-4000' lateral and perforate every 500' or so. Will they drill 2 of these per section and drain the 640 or how will they do it?
Thanks
I keep reading press releases (CHK & PXP trade) where these wells will be drilled on 80 acre spacings. I don't imagine they will drill 8 wells per section. They now drill on unit well with a 3-4000' lateral and perforate every 500' or so. Will they drill 2 of these per section and drain the 640 or how will they do it?
Thanks
Posted on 7/24/08 at 3:26 pm to cpl
I think they are going to drill them on 80 acre spacing, or possibly even 60 acre spacing. Drainage is only occurring near well bore, so we will just have to see exactly how they will line up the horizontals. But when CHK and others say 80 acre spacing, they intend on drilling down to at least that. They might intend on drilling the laterals staggered through the section from one or two surface pads. Until we see full development all we can do is guess, but I would assume it would somewhat mirror spacing in the Barnett.
This post was edited on 7/24/08 at 3:28 pm
Posted on 7/24/08 at 3:36 pm to TigerDog83
quote:
They might intend on drilling the laterals staggered through the section from one or two surface pads. Until we see full development all we can do is guess, but I would assume it would somewhat mirror spacing in the Barnett.
So only one to two surface pads will be needed per 640 acres?
Posted on 7/24/08 at 3:58 pm to Flop
My land is one mile north of Ashland in bienville parish 99 acres and chesapeake renewed my lease two months before it expired on 6/30/08.They have also called 2 times wanting lease 127 acres thats not leased.They offered 400.00 then 600.00 per acre.
Posted on 7/24/08 at 3:59 pm to LSU0358
CHK is building huge pads (7-10 acres each) in SW Caddo where they have two pads on each side of a section line with a shared frac pond in between both pads. This is probably a good indication that they will use one location to drill two sections. One could envision them using only one or two pads to develop a section completely because they can steer the horizontals wherever they want inside each unit. Until we see a section get fully developed we can only speculate.
Posted on 7/24/08 at 4:33 pm to topycreek
quote:
They offered 400.00 then 600.00 per acre.
Don't do it...if there is any possibility of there being something there they will offer lots more. They are just now starting to explore that area.
Posted on 7/24/08 at 4:45 pm to TigerDog83
quote:
I think they are going to drill them on 80 acre spacing
Does that mean 8 horizontals from just a couple of pads?
Posted on 7/24/08 at 4:50 pm to EliLafleur
Divide 640 by 80 and you clearly get 8....that's pretty simple.
Posted on 7/24/08 at 5:58 pm to Big Red
thanks
This post was edited on 11/1/08 at 9:18 am
Posted on 7/24/08 at 8:59 pm to ElmGrove
Disregard my last post about Ashland. CHK came thru at the eleventh hour with the renewal with only minutes to spare. Money in the mailbox today. I guess this area's not quite dead yet after all.
Posted on 7/24/08 at 9:03 pm to TigerDog83
quote:
I saw a log the other day in Natch parish that appeared to have the zone, but at 17,000 feet the economics probably don't support trying to produce it.
Which well did you look at? There have only been a handfull of deep (past the pettit lime) wells drilled in Natch. Parish and I'm fairly familiar with most of them. That is, of course, if you can say.
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