Burleson Texas Chesapeake Activity (Walmart area)


Great forum. I was happy to find this site.

My story as a micro mineral owner is this.

We sold our quarter acre home lot minerals 3 years ago for 3k an acre and 22.5% Roy.

I signed before the peak of 26k acre signing bonus when the holdout group had not yet formed. :(

We heard nothing for 3 years.

Now we get a letter in the mail from someone wanting ot buy our minerals out right.

They guy didnt seem very honest when I met him. He gave up no info on positive potentail of my lot

but was quick to state all the negatives. I didnt trust him as far as I could have thrown him.

What a perfect time to buy peoples minerals when the econmy is so bad and NG prices are at an 8 year low (3.86). I had no intention of selling but was after information.

He offered 2k to buy me out.

Chesapake owns my rights. They have been drilling next to Wallys for months and according to the TRC gis viewer there are already 10 wells from that pad alone. 4 in my general direction and they have a rig up even today. I learned from this "investor" that the "Unicorn" well is mine and is already drilled and probably being frac-ed. So production is either ongoing or soon to come.

He claimed I would get about $150 per year or $20 per month with my 1st check 8 to 10 months away.

Then he went on about how my taxes would be so high I would practically being paying to have my minerals. lol

One of many things he didnt say, and didnt want to admit when I brought it up is that I am pooled into the entire lease and will get proceeds from all the wells output within the entire lease.

Say they drill 4 wells on the lease, my $20 per month became $80 per mo, and thats at 8 year low NG prices. It could double from here easily, even though there seems to be an over supply of NG with all the shales in the US producing. That wont last forever I think.

So now lets talk about potential if gas doubles to 7.72, and I have 4 wells.

Thats potentially $160 month?

Anyway, I just wanted to run this stuff by the people here and see what they thought and if my reasoning on the potential of my little qaurter acre lot makes sense and my reason for not selling is sound.

Also, Im having a hard time trying to find out any info on chesapeake gas activity in Burleson Texas...and cant seem to figure out how to learn if my wells are producing and if so how much, or at least nearby wells, what the boudaries of my lease are especially the acreage, probably all the usual questions mineral owners have.

I thought I read somewhere once that the Barnett has the potential for 20 acre spacing for wells, if so and I am on say a 200 acre lease, then would not the potenail be for 10 wells?

Best case good 10 wells, NG doubles in price, mo check could be $360 mo?

Is my reasoning on ( albeit far fetched ) potential flawed?

My sister has 1.7 acres nearby, her check has dropped a lot from the start but was still $400 this month. Comparing my 1/4 acre to hers my check should equal about $50 as of today.

She has 4 wells at 25% roy.

We are in the JW Henderson survey behinf Walmart. A-376 according to TRC Gis viewer.

In any case, Im not selling my minerals. I consider it part of my retirement income someday and think that his 2k offer buyout was laughable.

All opinions or comments are much appreciated regardless of viewpoint.

PS: additional information on the wells from Chesapeake:

Burleson: HOG What to Expect The HOG padsite is located near the intersection of SW Wilshire Boulevard and NW Summercrest Boulevard. To date three wells have been drilled on this padsite.

The Pegasus 1H, Unicorn 3H, Unicorn 5H and HOG A 4H began drilling consecutively on September 11, 2010. Drilling is exptected to last approximately three weeks per well.

Check back soon for updates.

Development Plan The HOG padsite can potentially develop the minerals of hundreds of lessors in the area. Chesapeake is working closely with the City of Burleson to ensure minimal impact on the surrounding environment.

Current Status & Activity 01/2010 - Completed drilling the HOG A 1H and HOG B 3H wells 09/11/2010 - Began drilling the Pegasus 1H, Unicorn 3H, Unicorn 5H and HOG A 4H consecutively


Thanks for the time for such a detail resposne Loren. You are really good at math!

The company was Cherokee Horn Minerals.

I have more to say but am getting my daughters ready for church. Ill post more soon. TY

I drove to the sight to read the signs at the entrance.

It seems The Unicorn (there are 2 Unicorn ) is on a 304 acre lease.

Wouldnt that allow for 6 wells at 50 acre spacing?

I wonder a few things. Is Unicorn the name of the lease or the name of the well?

Also, is a 300 acre lease better than a 200 acre lease. There is more acreage thus more potential production, but to offset that a 200 would have less lease holders to share the revenue.

One of the wells I think was on only 35 acres.

I should have had my camera so I could look more closely at all the posted info, but my wife and kids were freaking out thinking I wasnt supposed to be there.

By the way Loren,

The Cherokee guy was trying to tell me he was being generous to pay me the first 8-10 years of royalies at once. Implying that was only $2k. According to your calculations and I could make that in 1 or 2 years.

I wouldnt have seriously considered 5k. Owning minerals is just a pretty cool thing regardless of the income. Any income is money that I dont have to work for and has lifetime potential. The 2k would have been soaked into the budget and forgotten next year.

One cant tell from looking at the acreage size alone exactly how many wells can/will be drilled. It’s possible to drill with 30-40 acre spacing in the Barnett, but the shape of the unit must be accomodating. Remember, CHK must be able to run a lateral well(s) of adequate length to make the effort economically viable - some unit shapes may preclude them from achieving 30-40 acre spacing. In addition, just because a certain number of wells are feasible based on the size and shape of a unit doesnt at all mean that all of those potential wells will be drilled (ever). CHK has thousands of drilling units in the Barnett, most of which which have not reached their maximum potential well limits. That said, only time will tell how many of those potential wells are ever drilled. As it pertains to your unit, I can’t tell you how many wells can/will ever be drilled. If CHK is drilling two now, that could be all that they ever drill, or it could be the first of the four that are permitted, or possibly more if the unit shape allows for more and if CHK desires more.

Finally to answer your other questions, Unicorn is the name of the unit - Unicorn #1H would be the horizontal well labeled #1 in the Unicorn unit, Unicorn #2H would be the horizontal well labeled #2 in the Unicorn unit, and so on. ‘Lease’ and ‘Unit’ are often used interchangeably but it sounds from your description that there are signs at the entrance to the pad site that says that at least two Unicorn wells are in process there.

Lastly, to your question of whetehr a bigger unit or a smaller unit is better, it all depends. If CHK only drilles two wells during the next 20 years, you’d probably prefer that the unit be smaller (200 acres vs 300 acres) since your share of the unit would be less diluted than if the unit was larger. However, having a larger unit can theoretically mean that there is space for more wells, if the operator chooses to use it. Ideally, youd have a 700 acre unit with 14-16 wells, but you could also get stuck with a 700 acre unit that only has one well ever drilled. Luck has a lot to do with whether you make a lot or a little (relatively speaking of course).

Rob Eastwood said:
By the way Loren,

The Cherokee guy was trying to tell me he was being generous to pay me the first 8-10 years of royalies at once.
Implying that was only $2k. According to your calculations and I could make that in 1 or 2 years.

I wouldnt have seriously considered 5k. Owning minerals is just a pretty cool thing regardless of the income.
Any income is money that I dont have to work for and has lifetime potential.
The 2k would have been soaked into the budget and forgotten next year.

Hi Loren,

Wow, I just found a wealth of info on the TRC site.

It is showing 3 wells on the Unicorn now, the Unicorn 1H, 2H and 3H.


Not only that but I was able to find the plat for the Unicorn and there is a little box on the top right that list Unicorn #1-7. (7 wells planned for the Unicorn?)

Also I see my lot on the plat, in addition I was able to pull up a "certificate of pooling authority form listing all the lease holders and my name is on it.

Dang, I may have somehow deleted your original reply. :frowning:

Rob Eastwood said:
Dang, I may have somehow deleted your original reply. :(

I just learned my wifes friend at work just sold her minerals to this crook for $1k, in Arlington same size lot. What a dummy, wish I could have talked to them 1st.

Nov, 8th, 2010

Chesapeake “monster” well reported

Chesapeake Energy has a new “monster” well in southeast Tarrant County that eclipses all other Barnett Shale gas wells in terms of average production for a one-month period, the Powell Barnett Shale Newsletter reported today.

The White South #1H well produced at an average of 17.824 million cubic feet of natural gas per day in September, the newsletter reported.

For a complete report, read Tuesday’s Star-Telegram.

Read more: http://blogs.star-telegram.com/barnett_shale/2010/11/chesapeake-monster-well-reported.html#ixzz14jIAuyDd

To get an idea of how big this well is read this article, the previous record was 13m in Arlington.


btw, my wells are 12 miles from here.

Believe it or not the girl who got cheated on her minerals yesterday for $1k, this nearly 18m monster well was HERS.

Very sad. had I know she was thinking of selling I would have tried to talk her out of it even though I dislike her husband.

Hey Rob,

I have the mineral rights to my extremely small home lot on Aaron Dr. Behind the daycare center on Alsbury. I had the same letters sent to me by mail, and placed directly on my door from Cherokee Horn. Never really considered selling the rights because I thought it was going to be a low ball offer. Glad to know my hunch was right. I'm not sure which well they are pulling gas from on my property. I heard it was one of the wellheads by Walmart, but looking at maps it could be one of three wells in different locations. Which ever one it is, it is not producing at this time as Chesapeake paid me $1.00 to keep the lease intact. I believe they are waiting for prices to rise before they tap the well. I have a feeling it is probably the same for most of the newly drilled wells in this area. I wouldn't hold my breath for a royalty check any time soon. Would Chesapeake be able to tell me exactly what well is pulling gas from my property???

Hello Frank,

Cherokee wouldnt be trying to buy up our minerals if they didn't think they were about to pay off imo.

A land man I spoke to recently said he doesnt know of Chesapeake holding back production of any well due to low gas prices. While they are drilling they can not by law be producing from the same pad from what I understand. If you are on the lease I think you are (HOG, from same pad site as mine next to Walmart) then your wells came in VERY good.

My bet is we will get royalty checks sometime this year, and for a small lot like ours it will be a significant check. Especially the 1st year until the pressure drops.

(yes! I just verified on TRC and Google maps, and your lease plat that you are within the Chesapeake HOG lease) drilled from the Walmart padsite same as mine are which is the Unicorn lease. This is very good for you.

When I have time I could do more research for you, but I looked at your wells before and I think they came in HUGE at 10-12 mcf per day.

We have been offered by Cherokee 2k on a little less than 1/4 acre. So you can be sure it was worth double that or more. Much more imo.

What might yours pay in Royalties?

I use this calculator:


On one of your HOG wells, if it opens at 10mcf per day and gas is at $4. Your lease is 374 acres. Ill assume you have a 5th acre (.20 acres) and signed at .225 royalty.

Your 1st check would be $149.11 on that one well alone. Per month. (dont forget to put back 27% for taxes)

Wellhead price may be lower, and other variables would change your total monthly check.

Whatever you do dont sell to those Cherokee crooks.

Granted, production would drop to half or more after the 1st year.

The plat names 8 wells on your lease and mine and right now at least 4 are drilled on each of our leases.

They are probably being fraced now. I expect the division orders to arrive in the mail any time.

But who knows how long they will take.

Chesapeake doesnt return my calls or emails, they probably get swamped from people like me asking questions.

Were just patiently waiting. They actually produced in August on our Unicorn 1H well and probably owe us $80 now.

Then they shut it in to drill 3 more wells because Ill assume the liked the results of the 1st well.

Hold on my friend, were in a sweet spot and in time free money will be arriving in our mailboxes.

PS The corner of your lease is on Morgan and Pebble creek, you are just inside the lease.

Also you need no well directly under your lot, you get a portion of the minerals extracted from the entire 374 acre lease ( according to your lot size and the % royalty you signed for) because you are part owner in it all.

Oh yeah, Now multiply your check by 4 wells at 10 mcf.

Its possible.

Write down this 255865 number, its your lease number.

Now see below, your HOG A 1H came in BIG.

They ran it at 6.5 mcf in August. 199k dvided by 31 days.

But they may not have ran it the whole month.

Indeed I just checked on your well test and it shows 8.2 mcf per day.

Certainly one of the top active gas wells in the Barnett shale imo,

Lease Name: HOG A, Lease No: 255865, Well No: 1H
District 09
Lease Production and Disposition
Jan 2010 - Dec 2010

GW Gas (MCF)
Condensate (BBL)
Operator Name Operator No. Field Name Field No.
Feb 2010 0 0 0 0

Mar 2010 0 0 0 0

Apr 2010 0 0 0 0

May 2010 0 0 0 0

Jun 2010 0 0 0 0

Jul 2010 0 0 0 0

Aug 2010 199,920 199,920 0 0

Sep 2010 37,028 37,028 0 0

Oct 2010 0 0 0 0



Total 236,948 236,948 0 0

Note that according to this article in March, your well would be in the top 10 in the Barnett!
(if it averaged 8.2 mcf per day the entire month)
While the Barnett Shale underlies more than 20 North Texas counties, the top "sweet spots" are in Tarrant and Johnson counties. All of the 35 biggest wells are in those counties, according to a new report by the Fort Worth-based Powell Barnett Shale Newsletter.
The premier producer, hands down, is the Day Kimball Hill A1 well in Arlington in far southeast Tarrant County, which averaged 12.97 million cubic feet of gas per day in October. It's the only well averaging more than 10 million cubic feet daily, but all of the top 10 wells averaged 8.2 million or more daily, and all of the top 35 averaged more than 6.3 million daily, which is triple what many typical Barnett wells produce.

Read more: http://www.star-telegram.com/2010/03/05/2018940/monster-wells-epito...
In any case I would think both our wells, mine at 6.2 and yours at 8.2 are in the top 100 in the entire Barnett Shale if they dont fizzle.
Our other wells should come in near the same give or take 1 or 2m.
Also, both our leases have room for 7 or 8 wells eventually.

I pulled up the RRC douments and maps and your correct. I'm in HOG A just barely inside the southwest edge of the lease. It looks like there are currently two wells drilled in HOG A, 1H and 4H. Also, It looks like 5 wells are planned. I also verified my name is on the HOG A list. It states 349.52 pooled acres, and I sit on .19 acres. I know I'm not getting rich off this, but it will be nice to have the additional income. I wish the Barrnett extended up into Grayson county. I own 9 acres up there with mineral rights. It's been leased twice by Chesapeake, (exploritory) and now its leased by Carla Petroleun. Not much gas up there, Mainly oily sludge.


See my email from Chesapeake yesterday, my guess is your lease is similiar except for the title opinion having a problem...

Thank you for contacting Chesapeake Energy. The first well in the Unicorn unit started production in August. Division orders are generally mailed 120 days after the first sale of gas to market; however, the title opinion for the Unicorn unit is not complete, which has delayed the release of the division orders. We do not currently have an estimated time frame for when these documents might be mailed, but during this delay, royalties are being held in an interest-bearing account and will be distributed accordingly once division orders have been issued.

Two additional wells have been drilled in the Unicorn unit, and fracing is tentatively scheduled to occur in early January. It is anticipated that pipeline for these two wells will connect in February 2011. Please feel free to check back with us for updates.

We finally got our division orders. We expect a check for about $120 next month then probably a lull why we wait for them to tie 2 more wells (3 total) into the pipeline and start production.

The 2nd 2 wells arent showing what they tested at yet on the RRC site.

These 3 wells only cover about a 3rd of the lease, Im hoping they came in good also which might motivate them to drill the other possible 4 or 5 wells. Higher gas prices would help too.

But at this point Im grateful to get free money.

Quite a few sold their minerals to the Cherokee (new name) investors for $2k.

I think I will get than in a year or 2 or production.

Update: Ive learned now that the 3h and 4H began production in late March.

The Unicorn now has 3 producing wells including the 1H.

There is room for 4 more on the lease.