A Reminder For AC Members - GoHaynesvilleShale.com2024-03-28T16:01:44Zhttps://gohaynesvilleshale.com/forum/topics/a-reminder-for-ac-members?groupUrl=austinchalk&commentId=2117179%3AComment%3A3665612&groupId=2117179%3AGroup%3A1676439&feed=yes&xn_auth=noI concur this time around the…tag:gohaynesvilleshale.com,2018-03-03:2117179:Comment:36715372018-03-03T03:49:04.458ZBob Zimmermanhttps://gohaynesvilleshale.com/profile/BobZimmerman
<p>I concur this time around the AC might play differently. I am cautiously optimistic the new lateral fracking technology will turn this play around. But then, so were the E&Ps in round one likewise optimistic. </p>
<p>I concur this time around the AC might play differently. I am cautiously optimistic the new lateral fracking technology will turn this play around. But then, so were the E&Ps in round one likewise optimistic. </p> Bob, you miss my point. I'm…tag:gohaynesvilleshale.com,2018-03-03:2117179:Comment:36714372018-03-03T00:52:12.328ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>Bob, you miss my point. I'm not making any argument for taking the bonus money. That would be an understandable course of action based on past AC plays however I think this time may be different. With that said, it is unlikely that the AC will be economic across the entire area now seeing leasing activity. So it's a game of musical chairs and the music has not even started. What I am saying, explicitly, is that if the bonus payment would achieve something substantial in someone's life,…</p>
<p>Bob, you miss my point. I'm not making any argument for taking the bonus money. That would be an understandable course of action based on past AC plays however I think this time may be different. With that said, it is unlikely that the AC will be economic across the entire area now seeing leasing activity. So it's a game of musical chairs and the music has not even started. What I am saying, explicitly, is that if the bonus payment would achieve something substantial in someone's life, take it and don't look back. That doesn't mean ignore other lease terms. It just means that trading a higher royalty for a bonus is a personal choice. If the play fails, those that took the bonus and did or didn't place value on the other terms will feel validated. If the play takes off, they may feel differently. </p>
<p></p> You make a strong argument to…tag:gohaynesvilleshale.com,2018-03-03:2117179:Comment:36716932018-03-03T00:42:10.651ZBob Zimmermanhttps://gohaynesvilleshale.com/profile/BobZimmerman
<p>You make a strong argument to take the bonus money and run. Having seen the Austin Chalk in Louisiana turn on and then crash, you can lose your appetite for risk in a hurry. When they operators first developed Masters Creek East in the 90's they were going to build drilling pads for the chalk all the way to where the trend intersects the Gulf of Mexico. And then one day- POOFH, the bottom fell out from under both oil and gas. </p>
<p>And it was all over but the crying.</p>
<p>You make a strong argument to take the bonus money and run. Having seen the Austin Chalk in Louisiana turn on and then crash, you can lose your appetite for risk in a hurry. When they operators first developed Masters Creek East in the 90's they were going to build drilling pads for the chalk all the way to where the trend intersects the Gulf of Mexico. And then one day- POOFH, the bottom fell out from under both oil and gas. </p>
<p>And it was all over but the crying.</p> I could use the pigs and hogs…tag:gohaynesvilleshale.com,2018-03-02:2117179:Comment:36715252018-03-02T22:38:42.456ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>I could use the pigs and hogs analogy but we decided to stop using it long ago as some mineral owners found it offensive. I understand why. It is better to simply state that one should have a feel for their negotiating clout/position and what is beyond reason in the way of lease terms. In the early days of GHS too many members with low value tracts asked for the sky and got left behind. At first some of them thought that was okay since a fair number of wells were paying out in 4 to 6…</p>
<p>I could use the pigs and hogs analogy but we decided to stop using it long ago as some mineral owners found it offensive. I understand why. It is better to simply state that one should have a feel for their negotiating clout/position and what is beyond reason in the way of lease terms. In the early days of GHS too many members with low value tracts asked for the sky and got left behind. At first some of them thought that was okay since a fair number of wells were paying out in 4 to 6 months at $13 gas. Then the bottom fell out and many of those members have gone years with no payment. Some of their wells may never pay out. Those that have get pencil whipped regularly by their operators.</p>
<p></p> Appreciate your comments. All…tag:gohaynesvilleshale.com,2018-03-02:2117179:Comment:36714302018-03-02T22:31:31.783ZBob Zimmermanhttps://gohaynesvilleshale.com/profile/BobZimmerman
<p>Appreciate your comments. Allow me to add an operator could insulate himself somewhat from whatever can go wrong during drilling by offering the fee owner a lease with a back-in after payout of 25% royalty and a stiff reduction the bonus. I don't know if many fee owners would go for that at the expense of royalties during payout, but it does seem somewhat more beneficial in the long run. The bonus money will be long gone shortly, but royalties can go on for decades. That five per cent spread…</p>
<p>Appreciate your comments. Allow me to add an operator could insulate himself somewhat from whatever can go wrong during drilling by offering the fee owner a lease with a back-in after payout of 25% royalty and a stiff reduction the bonus. I don't know if many fee owners would go for that at the expense of royalties during payout, but it does seem somewhat more beneficial in the long run. The bonus money will be long gone shortly, but royalties can go on for decades. That five per cent spread between twenty and twenty-five is mighty attractive if going long.</p> I suspect that there are alre…tag:gohaynesvilleshale.com,2018-03-02:2117179:Comment:36715102018-03-02T20:32:36.949ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>I suspect that there are already leases with a quarter royalty for well located, large acreage owners with first rate legal assistance. The play will have to prove economic and open acreage may have to be in areas where there is competition for leases by two or more operating companies to get those terms at this point. Let a handful of good wells be announced and the bidding will likely go up. </p>
<p>Here in the Haynesville Shale early leases prior to the Chesapeake announcement tied up a…</p>
<p>I suspect that there are already leases with a quarter royalty for well located, large acreage owners with first rate legal assistance. The play will have to prove economic and open acreage may have to be in areas where there is competition for leases by two or more operating companies to get those terms at this point. Let a handful of good wells be announced and the bidding will likely go up. </p>
<p>Here in the Haynesville Shale early leases prior to the Chesapeake announcement tied up a good many large acreage interests at a fifth and $200 to $500/acre bonus. After the play was announced and the first round of well completions were reported, everyone got a quarter. Didn't matter whether they owned 1,000 acres or 10. Something along those lines may happen in the Central Louisiana AC but it is too early to bet big. If the current bonus dollars are not enough to be life changing, I'd wait a while.</p>
<p></p> I'm curious if your statement…tag:gohaynesvilleshale.com,2018-03-02:2117179:Comment:36715042018-03-02T19:47:26.460ZBob Zimmermanhttps://gohaynesvilleshale.com/profile/BobZimmerman
<p>I'm curious if your statement "a larger royalty fraction" is any indication that a 1/4 royalty will stick now or in the future, and that a 1/5 could be on the cheap side if the play "plays", as they say in industry parlance. Your comment?</p>
<p>I'm curious if your statement "a larger royalty fraction" is any indication that a 1/4 royalty will stick now or in the future, and that a 1/5 could be on the cheap side if the play "plays", as they say in industry parlance. Your comment?</p> Probably because that depth i…tag:gohaynesvilleshale.com,2018-02-14:2117179:Comment:36674562018-02-14T18:22:34.754ZRock Manhttps://gohaynesvilleshale.com/profile/MarkP
<p>Probably because that depth is not tied to any prospective formation - the AC is deeper in the EOG area and not present at the shallower depths.</p>
<p>Without having a log from the EOG area in front of me, I am guessing that the equivalent 11,000' interval is in a shaly / silty part of the Upper Cretaceous section that overlies the Austin Chalk interval. And if this is the type of section present, its prospectivity will be minimal. </p>
<p>Side Note - if anyone has a log for this area,…</p>
<p>Probably because that depth is not tied to any prospective formation - the AC is deeper in the EOG area and not present at the shallower depths.</p>
<p>Without having a log from the EOG area in front of me, I am guessing that the equivalent 11,000' interval is in a shaly / silty part of the Upper Cretaceous section that overlies the Austin Chalk interval. And if this is the type of section present, its prospectivity will be minimal. </p>
<p>Side Note - if anyone has a log for this area, please comment on the shallower section as to lithology and formation.</p>
<p>Deeper in terms of depth is not a simplistic issue - there may be a different pressure gradient between the EOG La area and Texas areas. As well as a different historical temperature gradient that will impact thermal maturity and the presence of wetter (oil / condensate / NGL's) vs gas.</p>
<p></p> According to this, it seems…tag:gohaynesvilleshale.com,2018-02-14:2117179:Comment:36675232018-02-14T18:04:49.281ZDavid Crocketthttps://gohaynesvilleshale.com/profile/LindaBodie
<p>According to this, it seems that EOG has targeted a much deeper zone than what they had in Texas. I wonder why the areas that are more in line with the 11,129' have not been targeted. </p>
<p>According to this, it seems that EOG has targeted a much deeper zone than what they had in Texas. I wonder why the areas that are more in line with the 11,129' have not been targeted. </p> Does anyone have a map of the…tag:gohaynesvilleshale.com,2018-02-07:2117179:Comment:36659952018-02-07T16:04:00.234ZDavid Crocketthttps://gohaynesvilleshale.com/profile/LindaBodie
<p>Does anyone have a map of the Austin chalk in Louisiana showing the depth in each parish?</p>
<p>Does anyone have a map of the Austin chalk in Louisiana showing the depth in each parish?</p>