Replies to This Discussion

Permalink Reply by FairMktValue on June 27, 2013 at 3:34am

Very strange looking unit. Awfully narrow SE portion that did not include entire property sections.

There are two other pads nearby. Don,t know whose they are. I have attached a pic and I believe I have the Gill correctly identified.

The unit is laid out on the NW/SE angle they like to drill around here. I assume that is because the shale has a "grain" to it like wood or something like that.

Very narrow, hmmmm ?

Attachments:

• XTO Gill South.jpg, 201 KB

Permalink Reply by Oliver Perry on June 27, 2013 at 7:14am

The northwest - southeast direction of drilling is due to the existing natural fractures in the shale. I attached a pdf that explains it in detail.

Attachments:

• Penn State Marcellus Natural Fractures.pdf, 4.9 MB

Permalink Reply by FairMktValue on June 27, 2013 at 2:15pm

Oliver,

You most certainly do your homework. I read the entire pdf file and now I am qualified to work for XTO as one of their geologist !   LOL

"The northwest - southeast direction of drilling is due to the existing natural fractures in the shale."   Excellent summation !!!

Jaggin ya aside - that is a nice piece of info.

For example ( and you may already have this figured out) you can take a plat of an existing  pad, use the NW/SE angle as a starting point and grid it out. Say 4000 ft long by maybe 2000 ft and get a little bit of a guess where the next unit or pad is likely to be.

Ya, Ya , lot of variables there, but fun to play with.

My point being, if you are not signed yet, this gives you a little bit of an educated guess as to if and how bad they may want your gas. Just a little more ammo to shoot at the landman. Never gonna beat em, but ya can try to hit a few chinks in the armor.

Better info - better decisions.

Permalink Reply by Oliver Perry on July 3, 2013 at 2:42am

I updated the original posting with the Gill North Unit Designation.

Permalink Reply by GM on October 31, 2013 at 6:43am

What would be the main factor to drill in such a small unit? I assume they have no other land available to lease to expand the unit?

Permalink Reply by Philip Thackray on October 31, 2013 at 10:16am

GM,

One word – cheap.  Actually two words, cheap and greedy.

Everything to the left of the elephant trunk is also XTO – it is the Marburger B unit.  They could have reached the same location from the Marburger B pad but it was cheaper to go from the Gill pad.  The right side border of the elephant trunk is Critchlow School Road.  Everything to the right of that is Rex.  They are definitely draining the Rex properties and the properties in the Marburger pad too.  So XTO saves money and gets more gas from the Rex properties without adding leasehold property and the Marburger B pad people get screwed.

Welcome to modern O&G!

Phil

Permalink Reply by GM on October 31, 2013 at 10:36am

So looking at that line down Critchlow Rd, the property owners on it share in Marburger B unit also?

Permalink Reply by Philip Thackray on November 1, 2013 at 2:18am

GM,

Not sure I understand your question.  Inside the dark line (elephant trunk included) is all Gill South Unit.  Outside of the dark line to the left is the Marburger B Unit.  Properties to the right of Critchlow School Road are leased to Rex but no unit has been formed on that side.

Phil

Permalink Reply by GM on November 1, 2013 at 10:54am

The properties to the left, that border Brownsdale and Critchlow Rd are bisected by the Gill south unit western border-so those properties share in both units? I just found this website 3 days ago and have learned more here than all the others I have viewed combined. I too, particularly enjoy your's and FairMktValue's posts. Thank you.

Permalink Reply by Philip Thackray on November 1, 2013 at 11:30am

GM,

I understand now.  Looking at the bisected properties, only that part (acreage) which is inside the boundary lines of the Gill Unit are in that unit.  The remainder of the property is not in that unit.  In this case, the remaining parts (acreage) of those properties are in the Marburger B Unit.  Many times, the part left outside the unit is simply out of luck.

Phil

Permalink Reply by GM on November 1, 2013 at 11:43am

I have not seen the Marburger B designation pdf. I am assuming a lot, although I can tell properties like Udit benefit from both. So the answer to my question is that those properties recieve royalties from the 2 units?

Permalink Reply by Oliver Perry on November 1, 2013 at 12:06pm

GM,

Here is the pdf for the Marburger B Unit. If the properties have acreage in two separate units they will get royalties from both units.

Attachments:

• XTO - Marburger B Uint Designation.pdf, 172 KB

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