I have a friend who has been shut in since the middle of 2012 in La Salle County Texas. She was told by various people that her wells could not produce due to hunting season last winter. One was drilled June 1, the other in July 2012 according to permits. She did receive appr. $300 shut in royalty, but no division orders, no DO's, no production reports, no royalties, no information or correspondence at all, even with numerous requests and calls to her landman and the producer. In other words, there is deafening silence!
The co is Petrohawk now. The Tx RR Commission shows these two wells as "Z-unperfed completion." Why the Z? I am assuming it means unperforated / imperforated but we have no idea how it affects production for so long. Is it oil or gas or both?
Does anyone know exactly what the Z-unperfed completion means?
We have searched every definition close to that on the web to no avail. There are lots of "expert opinions" on other forums. The gas is no good, the co does not want to spend money since gas is low, it means they will do it later, it means it will be capped, etc.etc.etc......
These wells appear to be in Hawkville EF1 La Salle County, (near Los Angeles) a good area for oil and gas by all accounts.
Also, is it true that gas wells pay shut in royalty, oil wells do not?
The "Z" is a code (flag) in the master file tape completion information, if I am not mistaken. Hunting season was over late January in the South Zone.
As to your shut in questions, you will have to refer to the lease to find out the definition of shut in for that lease. There is no stock answer, but 99.9% of the leases provide for a shut in royalty on gas only.
As to the speculations of other "expert opinions" that is just what they are - - - speculation.
According to the frac focus chemical report the wells were "job done" in August for gas with the list of chemicals used. The TX rr commission shows it as "z-unperfed completion" so the question remains, is that good or bad? My friend has received no DO's nor royalty payments so I am assuming it is not producing or could it be an infrastructure problem? In July it will be a year since she has been ignored. Does anyone know if there is pipe line for gas in that area? She tells me it is two of the White Kitchen wells in La Salle. Thank you
My answer remains the same. One can only speculate until there are more facts. Your friend could make a request from the operator for additional information.
Sorry if this is not the answer you are looking for. It's all I have.
I do appreciate your comments and thank you. Needing more info was not meant as criticism. I found out that the wells have been shut in, not producing due to some problems. Under normal circumstances z unperfed means not perforated. That can be a lease problem or rule 37 just in case someone else gets that status. Now we know.
This brings me to the question of what to do if PH is tying up a lease by walking away from the wells which are not producing. What happens next. They have ignored my friend's questions for almost a year in August.
Buddy Cotten said:
The "Z" is a code (flag) in the master file tape completion information, if I am not mistaken. Hunting season was over late January in the South Zone.
As to your shut in questions, you will have to refer to the lease to find out the definition of shut in for that lease. There is no stock answer, but 99.9% of the leases provide for a shut in royalty on gas only.
As to the speculations of other "expert opinions" that is just what they are - - - speculation.
If the primary term has lapsed, it depends on how the lease is worded on several fronts. Do you have a copy of the lease?
Cookie Gartner said:
I do appreciate your comments and thank you. Needing more info was not meant as criticism. I found out that the wells have been shut in, not producing due to some problems. Under normal circumstances z unperfed means not perforated. That can be a lease problem or rule 37 just in case someone else gets that status. Now we know.
This brings me to the question of what to do if PH is tying up a lease by walking away from the wells which are not producing. What happens next. They have ignored my friend's questions for almost a year in August.
Buddy Cotten said:
The "Z" is a code (flag) in the master file tape completion information, if I am not mistaken. Hunting season was over late January in the South Zone.
As to your shut in questions, you will have to refer to the lease to find out the definition of shut in for that lease. There is no stock answer, but 99.9% of the leases provide for a shut in royalty on gas only.
As to the speculations of other "expert opinions" that is just what they are - - - speculation.