Replies to This Discussion

Permalink Reply by Margaret Wren on August 28, 2008 at 4:09

I I would not sign for $150/acre!!! Look this website over very carefully and see the price per acre all around you!!!!

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Permalink Reply by Bobi Carr ("parker") on August 28, 2008 at 6:00

Dan,

If they only want to drill to the Pettit, give them only rights to the Pettitt. Save your shallow rights and your deep rights. What may not be finacially feasible to drill presently may become so shortly. One way or the other, if they are making statements of any sort make them back them up.

I have seen a Memorandum of lease in South Bossier that specifically stated they can only drill between 9702' and 11,334'.

I would check with Jay (in the Group, Jay the Geologist). See if one of his maps would help you establish exactly what the depths of the Pettit are. The maps only cost $100 and if it tells you the depths it is well worth the investment. It might also give you some bargaining power.

In the past, there were many landmen that you could depend on their word. I know such individuals. But with that said, I would no longer trust what one is telling you (unless they can back it up).

He wasn't willing to exclude the HS (so maybe they want to go for it). But now that you are informed, keep everything except the Pettit. If they are at your doorstep now they want to lease it.

If they won't lease under those terms, tell them you are not afaid of being force pooled. Tell them good things are worth waiting for. Let them know that you will lease, if and only if, they will treat you fairly.

GOOD LUCK

Good luck

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Permalink Reply by TREY on August 28, 2008 at 6:35

I would have had to asked them if the word "STUPID" was stamped on my forehead. They are just using a different tactic. Look at all of the activity in Ida and it's about as far north as you can go in caddo parish.

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Permalink Reply by Bobi Carr ("parker") on August 28, 2008 at 7:07

http://www.gohaynesvilleshale.com/forum/topic/show?id=2117179%3ATop...

Dan,
Please read Jay's comments on the discussion link above.

Seems to indicate the shale is present there. I would take my sweet time making any decision. Get all of the information you can get your hands on first.

GOOD LUCK

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Permalink Reply by Dan McIntyre on August 28, 2008 at 13:17

Thanks to everyone for the good advice and input. I read the 3 pages of discussion from the topic mentioned above but most of that discussion was on the Terryville field in LIncoln Parish. I have discussed the leasing proposals from Riverstone with other land and mineral owners around us (mostly relatives) and they agree that we need to hold out for a lot better offer, especially if they wish to lease all depths. I just don't think that the big players in the Haynesville shale are interested in exploring this far north in Bossier. Maybe in several years, when they have drilled in all the known fields and they are looking for undiscovered deep gas. Thanks again for all your help. Dan

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Permalink Reply by Greenwood Gas on August 28, 2008 at 13:51

I just don't think that the big players in the Haynesville shale are interested in exploring this far north in Bossier. Maybe in several years, when they have drilled in all the known fields and they are looking for undiscovered deep gas

That is the main reason to have a depth clause.
Without one you can be held by a shallow well and not be able to lease the deeper depths in the future. The little company you lease to now without a depth clause May in the future get the bigger bonus per acre with atleast 25% royalties that will give them 5% or more override on your royalties

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Permalink Reply by Bobi Carr ("parker") on August 28, 2008 at 15:48

I read on tiger droppings that property North of Benton people were getting HS excluded.

If they don't want the HS, surely they could exclude it.

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Permalink Reply by Bobi Carr ("parker") on August 28, 2008 at 16:04

If I had it to do over again. I would only lease the formation they "say" they want to drill.

I would even go for a lower bonus to make it happen. If they weren't willing to deal, I would have to hold out.

Just my opinion after BIG mistake with leasing 1 year ago.

ANYWAY GOOD LUCK TO ALL!

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Permalink Reply by Tom Fullery on August 28, 2008 at 16:11

There are numerous wells already producing out of the Haynesville formation in and around Haynesville, LA. In fact, the vast majority of the wells actually producing the HS are very far north, many within spitting distance of the Arkansas border. Sure, there are few around south of Shreveport/Bossier, but the majority are north. And you wanna know something? They don't produce worth a damn, relative to many wells in the Hoston and Cotton Valley formations drilled around the same time ( they do seem to produce more oil than many other wells in other fields around the Ark-La-Tex.) But yeah, if it's shale you're interested in, it's under you. You'll probably get a good lease bonus, but not before the big boys are interested in your area. Consider this: If I offer you $150 for your acre of land, for a 3 year lease, I have very little to lose if I opt not to ever drill your unit. However, if I offer you $20,000/acre, you have some reasonable insurance that I'll be back with a drilling rig in the next 36 months, if to do nothing more that tie your lease down with production. The point I'm making that if they're not offering anything worth considering, knowing that the cat's out of the bag with regard to lease bonuses and what people around here expect to be paid, they obviously don't have an imediate interest in your area. They will eventually, but that could be several years. How long have they leased in the Barnet? They still have wrapped that up. Patience, Dan. Patience.

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Permalink Reply by reg on August 29, 2008 at 10:17

north bossier --- lease for 500.00 flipped for 25K. landowner was told the same thing you were. be patient, you are not buying a one of a kind used car.

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Permalink Reply by Dan McIntyre on August 29, 2008 at 11:08

Thanks to everyone for such wise instruction! I'm in fairly good shape finacially and within a few short years or maybe even months of retiring if I choose to. Point being that I don't have to be in any kind of hurry to lease our mineral rights, especially at 1970"s bonuses and royalties. I just hope the other land owners in our area are reading and studying whats going on in NW La. ;and will stick to their guns also. I need to try and contact everyone and organize a landowners group so we can all be ready to deal with one accord. I have already started making some contacts. Thanks again to everyone. This site and forum has been a great help. Hope I can help others out along the way like you folks have helped me. Dan

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Permalink Reply by mike wilson on August 29, 2008 at 11:20

I talked with the Louisiana Mineral Board Geologist this week and he indicated that because of the shallow water depths in the northern part of Caddo and Bosier that the Haynesville Sand is probably up there instead of shale for whatever thats worth; maybe shalegeo can offer some geological perspective. His comment was the depositional characteristics were not conducive there when the shale was created. I also talked to the geologist in Arkansas about any shale wells in the lowest part of Arkansas and he indicated Chesapeake had already drilled a well (he thought) somewhere in the southern part of Arkansas and P&A'd the well (Plugged and Abandoned) only things I have heard as I myself have minerals in both places and so I am very interested. Good luck and maybe they are all wrong....

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