dsquareg

I recently leased my Bossier land North of PD within the bonus price range mentioned in earlier posts after becoming convinced HS petered out south of me and after reviewing past drilling activity. Most of the activity in that area was in the 1980s, almost 280 completed wells in T23N for instance, with around 60 still in production! Haynesville Sand, Cotton Valley, Pettet Lime, and other zones all produced at one time or another. The larger percentage have been oil but some are gas. None are big producers, a few bbl or a few thousand cfe per day. Serveral others are shown as being reworked an/or injected. The OG was willing to exclude the Haynesville Shale from my lease to get the deal done. I was very willing to exclude it to get on with any exploitation of the other zones!

It is in north Bossier, T23N. The OG asked me not to be specific on terms, most important were: bonus less than $300/ac, Royalty more than 20% net, term 3 years, important clauses: Excludes Haynesville Shale, horiz and vert Pugh clauses.

Sorry so long to answer, other priorities.

I've just finished leasing 80a in T23 which has no HS play. Have another unleased 100a just across the state line in Ark. Anyone know of anyone leasing in south Ark??

quote:

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Nobody will be up there looking for the shale. Look at any well logs, not just the two dry wells. People may be in north Bossier looking for Cotton Valley, but no shale.

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So what would you think a lease should bring for Cotton Valley and Haynesville Sand in that area?

Anybody:

I have been offered a lease with the following clause " this lease excludes the Haynesville Shale formation as defined in the Office of Conservation including the Haynesville Sand formation as described by Order No. 329-C-1". The lease is for land located in T23NR13W which by most available information is too far north for the Haynesville Shale anyway. Obviously the OG company is trying to keep the bonus money/royalty from being unduly influenced by all the Haynesville play, factual and rumored. All the other mineral owners in my section were leased before Haynesville play became public so their leases have no such exclusion.

I've nevertheless tried (unsuccessfully) to find copies of the referenced orders to see what is being excluded. The lease, at my request, also includes both vertical and horizontal Pugh Clauses. The pooling clause allows one or more units/640ac (max) for gas and one or more units/80ac (max) for oil. Is this standard unit spacing in Louisiana and is it controlled by the State?

While extremely unlikely, what would happen if a well in my section/unit did produce from multiple zones including Haynesville Shale and/or sand? How would I know? From production reports files with the State? Is there anything else I should do to protect my interests, real or future potential?

Any suggestions would be appreciated.

I am the last unleased owner in a section in T23N. The lease I'm now being offered is about what the other owners were offered almost two years ago (before Haynesville Shale became public) but the lessor volunteered to put an exclusion in the lease for Haynesville Shale and Haynesville Sand as their primary interest is Cotton Valley. From what I've read my land is about 12-18 miles too far north (as implied by lessors offering to exclude Haynesville). The lease wording does not address depth. It seems to me a depth clause (100' beyond any finished depth?) might be more practical. Any suggestions? I've really appreciated your posts and they have been very helpful.