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Eagle Ford Shale - Oil & Gas Discussion


Eagle Ford Shale - Oil & Gas Discussion

Oil & gas discussion group for those interested in Eagle Ford Shale. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.

Website: http://www.eaglefordshale.com
Location: South Texas
Members: 412
Latest Activity: Sep 30

Discussion Forum

Eagleford Update

Started by John Sabia. Last reply by William Douglas Archer Aug 9. 13 Replies

As a mineral owner in the Eagle Ford, Vine Royalty likes to stay up on trends and happenings in the shale. Below is a list of moves made by the big operators in the Eagle Ford. Let me know what…Continue

Keywords: Natural, Resources, shale, Pioneer, Noble

2015 Review

Started by John Sabia Jan 6. 0 Replies

Overall, 2015 was a bust for the oil and gas industry. It has forced U.S. drillers and operators to cut down capital budgets by the billions. Law firm Haynes and Boone LLP on Dec. 4 released its “Oil…Continue

Dimmit County Short Term Lease Extension Request

Started by William Douglas Archer. Last reply by Rock Man Jan 5. 1 Reply

I have been asked to extend a lease by 68 days that still has approximately 7 months remaining.  This was originally an 18 month lease, with depth limitations and still has over six months to…Continue

Keywords: lease, bonus, market, extension

Eagleford Rig Count Update

Started by John Sabia. Last reply by CClayton Dec 3, 2015. 1 Reply

According to the Baker Hughes Official Rig Count statistics, as we start to enter in the last month of the 4th quarter, there are currently 73 active rigs in all of the Eagle Ford Shale. Breaking…Continue

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Comment by William Douglas Archer on August 14, 2016 at 4:13pm
You can likely find it on the railroad commission website and can then download the plat which will detail the land included.
Comment by CClayton on August 14, 2016 at 3:28pm

Our 1st well wasn't drilled till the very beginning of year 5, but it's impossible to say they would have drilled within the first 3 years under the pressure of having no extension option. I feel safer saying it's a good thing we did allow an extension in our case. EOG is the company and I couldn't find the acreage for our unit on any documents. I think I spotted it once on the TxRRC website and it was slightly under 640 acres, not all ours.

Comment by William Douglas Archer on August 14, 2016 at 3:02pm
This was an 18 month paid up lease. First well completed with 7 months remaining and of courses a continuous drilling obligation. Seems that the lease was going to expire prior to the spudding of the next well.

I personally do not believe in options as they are certainly not in the lessor's best interest. If the market is "hot" the lessor fails to capture the momentum. If the market "cools" the lessee either renegotiates or allows the lease to expire.

CClayton, who was your lessee and how many gross acres did your lease cover!

Comment by CClayton on August 14, 2016 at 2:43pm

There should be one or more paragraphs in your lease contract that address "pooling" acres to include adjacent acres that are owned by others. 640 acres is a standard max size for a unit, but the number varies for different scenarios, such as gas or oil, vertical or horizontal. Our lease was a "paid-up" lease, meaning we received a lump sum for a 3 year lease with an option for the lessee to extend for 3 years with another lump sum payment, which they did. No further lease payments will be made since they have begun drilling and paying us royalties, and they retain the right to continue operations by virtue of continuing operations.

Comment by William Douglas Archer on August 14, 2016 at 1:29pm
So by forming a 640 unit, can the oil company hold access to a square mile for as long as the initial well is producing and drill additional wells at no additional leasing cost either when they want to or after the royalty owners start complaining that the $3.00 annual check is indicative that the well is not producing at commercially readonable levels leaving the royalty owner to initiate a fight against potentially a well funded adversary?
Comment by Rock Man on August 14, 2016 at 1:03pm

Even a well stimulated horizontal well will only be tapping at most 160 acres. A fractured reservoir horizontal like that seen in the Buda or AC may drain farther away from the wellbore if a good fracture is encountered but I would still not go higher than 160 acres (more like 80 acres depending on hz well length.

What does Tx RRC say about max unit acres for a horizontal? I know that there is a formula they have that allows for a calculation of unit size based on lateral length.

Comment by William Douglas Archer on August 14, 2016 at 1:00pm
I have been approached to extend a lease for 30 days despite the fact that this same lease was previously extended for 58 days so that the lessee could get a rig on site and commence drilling. Now the 58 day extension was 6 months prior to the expiration of an 18 month lease.

Operator first told me that they were going to drill a well in the Buda Formation. So i provided three options from 30 days, to 60 days, to 90 days as i want to be sure that they are sucessful in commencing the well this time.

I received a counter to my offer last weeks whereby they want rights to drill both Buda and Austin Chalk, no obligation to drill, no development penalty if they fail to drill and wanting just the land for the unit which is 640 acres.

Isnt that too much land? How much do they realistically need for their unit? My goal is to avoid allowing them to hold excess land.
Comment by Daniel Baca on January 18, 2016 at 9:25am

I am now taking leases in Atascosa, Frio and LaSalle Counties. Feel free to Add me as a Friend and send me a message if you have land in these counties that you would like to lease.

Comment by Anna McNeill on December 11, 2015 at 7:13pm
Yes, there has been some interest in acerage off of 59 North of Beeville near the Medio Creek towards Berclair.
Comment by Curtis Deussen on October 1, 2015 at 2:23pm
My neighbors just leased their land and rumor is that a 10,000 acre block was leased right by me (Western Bee County just south of hey 59). A little surprising with the price of oil. Does anyone have an idea of what is going on?

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