"I was referring more to Lynn's comment about spaces between current Production Units and added my thoughts about people who are not leased.
Also, I assume that many people caught between Production Units are leased already.
"I assumed current law and interpreted "get as much gas as they can" to include drilling as close to the property lines as possible. I don't know if a vertical well could capture enough gas to make it worthwhile. But…"
"Good question and maybe that is one example of how a Forced Pooling law would protect one or the other owners.
Are you suggesting that the "Company B" is now getting gas from leased land of "Company…"
"But what about this scenario? Company A drills horizontally right along the line and the fracking extends perhaps 300' into the adjoining property. The gas is now essentially a pool of "free" gas, under pressure, along…"
"I think you see areas between Production Units Lynn because the Production Units may chance size and shape up to when the Gas Company gets nearer to actual production. Then, they finalize the Unit. Anyone who is a "holdout" for…"
"There are probably a couple dozen new wells within 2-3 miles of me in the past year. I used Landex to mark off all the units within a mile of me, and this area is pretty much filled with units. There are small slices of land (not big enough for a…"
Good question- you will probably find that regional Production Unit maps are proprietary information.
Maps of each unit are placed of record in the Recorder of Deeds Office - in order to provide public notice that a lease is being held…"
"Boy that site is over a year behind......Any new wells or Declared Production Units near you Lynn in the past 12 months?
Spring as sprung and seems like things should be starting to pop.
thanks Lynn "
"Seismic testing doesn't always take place, or at least not throughout the whole unit. A unit was declared around me, and I know that no seismic testing was done on the entire southern end of the unit. I don't know about the northern end,…"
"If the seismic testing is being done on the road wtih thumper trucks, my guess it that it's a general survey of the area ... not related to any specific planned drilling. PennDOT does give permission to test on the state's …"
"As far as I know, East/Shell didn't any seismic testing in Delmar township. The just went ahead and put in a lot of verticals wells and declared units. Much of Delmar township is already held; I can't imagine why any one but Shell would be…"
I understand. Most lease deals are just that, a deal.
You either get the terms you want, or you don't take it.
The uncertainty is whether you could have got a better price to lease, and whether a well on your acreage or unit your acreage is in, gets drilled, and then whether it starts selling gas so everyone starts to get some ongoing revenue out of it.
There are a lot of risks involved, but once the mineral owner leases, then most of the risk is upon the O& G company to do something with the cash outlay it just spent to obtain the drilling rights. We spend 3.5 or 4 MM to drill a horizontal, set pipe and cement, then multi-stage frac the horizontal leg and then hope no mechanical problems arise like getting stuck in the hole, or geologic problems like a fault in the shale that simply "drinks" the cement and will never take a good cement job 6500 feet below the surface, ruins the whole expenditure. The public companies sell stock and if this happens they move to the next location and use some more stockholders money to drill in other locations. The landowner keeps his lease money, but that acreage is probably history to get another well drilled upon.
Having some seismic helps detect the faults before a horizontal leg is drilled across the acreage. Still Murphy's law always exists.
Let me know how much acreage you are in touch with, as all kinds of concessions can be made.
At the peak in late 2008 we sold out to public company symbol XTO, Cross Timers, all our Barnett Shale producing horizontals, and undrilled acreage. The total price was 800M. Not a Billion, but close.
My partners and I have watched , Chesapeake and other majors along with minors like East try and sow up acreage. Thats fine. If we move, we like to have contiguous acreage and the landowners can just take the lease money and royalty interest, and they can have the added option to participate in the production or ultimate sale if they elect to.
What makes this site so great? Well, I think it's the fact that, quite frankly, we all have a lot at stake in this thing they call shale. But beyond that, this site is made up of individuals who have worked hard for that little yard we call home. Or, that farm on which blood, sweat and tears have fallen.[ Read More ]