42713 AVOYELLES, LASALLE 16 T04N R04E 632.425 NO BID .000 $0.00 $0.00 $0.00 0.0000000 0.0000000
1 42714 AVOYELLES 16 T03N R06E 638.960 20961 EOG RESOURCES, INC. 638.960 Acres $479,858.96 $751.00 Per Acre Bonus $239,930.00 0.25 Royalty
1 42715 AVOYELLES 16 T03N R04E 647.460 20962 EOG RESOURCES, INC. 647.460 Acres $518,615.46 $801.00 Per Acre Bonus $259,308.00 0.25 Royalty
1 42716 AVOYELLES S16 T02N R05E 628.952 20963 EOG RESOURCES, INC. 628.952 Acres $503,790.55 $801.00 Per Acre Bonus $251,895.27 0.25 Royalty
1 42717 AVOYELLES 16 T02N R06E 639.169 20964 EOG RESOURCES, INC. 639.169 639.169 $480,015.92 $751.00 $240,008.00 0.2500000 0.2500000
1 42718 AVOYELLES 16 T02N R07E 628.526 NO BID .000 $0.00 $0.00 $0.00 0.0000000 0.0000000
1 42719 AVOYELLES 16 T01N R06E 639.360 NO BID .000 $0.00 $0.00 $0.00 0.0000000 0.0000000
1 42720 AVOYELLES 16 T01N R07E 639.200 NO BID .000 $0.00 $0.00 $0.00 0.0000000 0.0000000 1
Skip PeeL - I see (2) $ amounts on each of these lease results. Could you explain what the 2nd $ amount means?
Also -- are these 1 year leases?
Yes, state leases have a one year term but may be extended for additional years by a payment of one half the original bonus per acre payment for each year. For example, Tract 42714 is 638.96 acres times a bonus of $751 = $479,858.96. If not drilled or released the lessee would have to make a payment of one half that amount or $239,929.48 to extend the term for an additional year. Excepting cases where the lessee is a speculator, most energy companies assemble the bulk of their private leases before taking any applicable state leases. In other words they plan to drill to hold the lease before the one year expiration.
Thanks Skip for the great explanation. Impressive #'s.
You're welcome. State leases are the only place that lease bonus amounts appear in the public record.
The lease that intrigued me was the 98 acre tract that I think was was a school board lease.
That lease recieved a $801 per acre bid.
From what I can tell many of the leases only had one bid. EOG!
I wonder if Halcon or others interested in Avoyelles got caught sleeping?
EOG and Halcon (Floyd Wilson) appear to have learned a lesson from the Haynesville Shale. That lesson is to avoid head-to-head competition for leasehold in unconventional plays wherever possible. I can assure you that Halcon was aware that that particular lease tract was available in the state auction. It's in an EOG area, not a Halcon area. What many land/mineral owners fail to realize is that companies that operate (drill wells) aren't generally interested in buying leases in areas where a competitor already has the majority of lands under lease. Only the company with a majority of acres is in a position to operate.