Any news on leasing rates for this well? Sanguine operates the Johnny well from 1985.
I moved your question to the Caddo County topic area. Since the Johnny well is still in production, there will not be any new leasing. The original lease moved into the secondary term when the well went into production.
However on the good news side, Kaiser-Francis has a case before the OCC to drill a horizontal well with section 7. Hearing is in late April. King Energy has a case for the southern half of 8 and section 7. Hearing was supposed to be in late March.
I have an really small WI in the Johnny 1/640. Got a notice about Kaiser-Francis wanting to drill. Got a phone call offering a lease 750 per acre 3/16, 650 per acre 1/5 and 150 per acre 1/4. Forgot the landmans name but saved the phone number. He is going to send offer in writing.
You may have been force pooled at one level for the Johnny. The new horizontal may be in a different zone and that would need a new lease or a wait for a force pool.
I know there was a force pool in 1985. My Dad took an WI in the Johnny. So I could request an AFE or sign a lease.
Yes, you can participate, lease or wait for pooling. See what the terms of the lease might be. If this is your first one, get legal advice because that draft is probably not in your favor.
Would an AFE be bound to the terms of the Johnny lease and operating aggreement?
If the reservoir is the same as the pooling, then it may tie. If the reservoir is different, then perhaps not. All depends upon the wording. The AFE for a horizontal well is going to be drastically higher than for a vertical well. Working interest in those wells is a different ballgame. Wise to have deep pockets, an LLC that protects the rest of your assets from liabilities in the case of a blowout, etc., a good attorney, a good accountant, insurance, etc.
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