Replies to This Discussion

Permalink Reply by Lynn Wigglesworth on June 19, 2010 at 10:18am

I'd love to know just what is the story with wells in Tioga Co. How many are actually completed and producing? How many are just a vertical well (with no pipeline yet) in a 640 acre unit, holding the land but not producing? I know that there are people actually getting royalty checks somewhere, but not around here!

Permalink Reply by Lynn Wigglesworth on June 19, 2010 at 11:06am

I submitted the addendum my lawyer came up with; we'll see if they accept it, or there is another round of negotiations. It seems the more I dawdle, the higher the bonus goes, so I'm not in any hurry. I'm still curious to see what comes out of the TTLC bidding. But at some point I'd like to just be done with this, collect my bonus and live happily ever after on the royalties (I can dream, anyway!).

Permalink Reply by William Ladd on June 19, 2010 at 11:57am

Well Lynn our lease offers have gone from $300 to $2000 in about three years. If it gets to $3000 we just might call a halt to the waiting game and accept it. I sure do not want to be greedy! I just want to have enough income so I dont have to buy gasoline by 3 or 4 dollars at a time like I do now. Part of the fun is dreaming about a windfall like this you know.

I set up a spread sheet using whatever information I can gather. Then I change the values around just to see how they work out in the end. My dad had a saying about numbers, He said, "numbers dont lie, but liars do figure!"

Oh by the way I wonder just how many of these well pads can normally be put on a 640 acre site?

Bill L.
aka Bummy.

Permalink Reply by Ann Ticopa on June 19, 2010 at 11:45am

Be patient; we'll find out in November which wells are producing. I asked the East landman which they were going to do next, drill more wells on units having one (shut-in) well or start new units. He didn't have an answer. As far as I can see, fair pooling would make it easier for them to drill more single wells primarily to hold leases. And when they do start selling gas, there is no guarantee that the people who have been waiting the longest will be the first to have their gas marketed.

Permalink Reply by William Ladd on June 21, 2010 at 7:36am

At this stage of the game, I'd be happy just to get a lease. I would not worry much about shut in wells just yet.

Bill L.
aka Bummy

Permalink Reply by Ann Ticopa on June 21, 2010 at 8:47am

The difference is that, signing a lease today, you would be getting a sizeable bonus. In May, 2005 Fortuna was offering a $20/$5 five year lease. There were approx a half-dozen wells drilled in my area last year - which would have held anyone who signed for that bonus. (And those who held out and signed for Fortuna's next "last best offer" of $60/$5.)

Permalink Reply by Frank Walker on June 26, 2010 at 7:13am

Depends on the frac efficiency and drain profile.

Taking a (rather standard) square mile (640 acre) DU (drilling unit) as an example, I would look for a minimum of eight wells on the pad to provide ample drainage for the entire DU. If they believe the frac outreach will be further, there will be fewer wells. The important thing is you want them to drain you as fully as possible, which means you want them to drill enough wells to get that job done. Otherwise harvestable natural gas will be left behind, in the ground. And you don't get any $$$$ for that gas.

There are plenty of instances today where the gascos are playing HBP (hold by production) games. This means they might drill only one or two wells today, then come back later and finish up. To be honest, with the price of natural gas so depressed, I don't have a problem with that scheme. But other folks, those needing quick money, might have a problem with it.