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Permalink Reply by RONNY on October 12, 2008 at 14:41

In 8 short months we went from the largest natural gas play in the United States, possibly 4th largest in the world all the way to "Ain't gonna be no more leasing". Heck that's gotta be some sort of record. I'll admit there are some billion dollar dumbasses running some of the biggest companies in America, just look at the state of our banking system. However I refuse to believe the big O & G's ain't interested in our gas anymore. Everyone is entitled to do as they wish, but the lease bonus should never, ever, ever be worth one penny less than their last high offer regardless of the excuses given. They will be back unless they figure out how to burn water. JMO

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Permalink Reply by ez on October 12, 2008 at 14:56

amen brother!!

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Permalink Reply by Bobi Carr ("parker") on October 12, 2008 at 15:32

I guess every share of stock should not be worth any less than they were before last week either.

I wish you were right, but I don't think that is the case.

JMO

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Permalink Reply by Bill R on October 13, 2008 at 8:26

adulu -- My family is currently signing one contract with one of the companies you mentioned and we were contacted again on Friday (10/10/08) about yet another lease agreement to contract for additional mineral land in both Shelby and San Augustine counties. Where did you hear of the holds being placed on leases?

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Permalink Reply by Bonnie Bober on October 13, 2008 at 9:59

This is the time of the year that all Oil companys start to close out the fiscal year, so you will see very little activity till the first quart of next year. This is standard for the Oil field.

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Permalink Reply by MALCOLM WHORTON on October 13, 2008 at 10:20

I contacted our land man this morning who work for chk .CHK has stop leaseing totally in Northwest ,LA he said that chk would honor everybody they had already commited to,but they're not leasing anymore as of now.
I signed for $15.000 acre on 09/18/2008 he assured me they would pay us in 90 days out of the 2009 budget possible even before then and if and when they start back leasing bonus per acre will be far less than it is now.

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Permalink Reply by J Todd on October 14, 2008 at 16:56

My landman told me the exact same thing. He did not say they are not leasing anymore, he just said if we will take a 45-day bank draft, they will honor their 12k/acre. He said they are cutting back on the per diems of landmen (reduced mileage reiumbursement, no reimbursement for lunches, etc). as well as bonus money. Otherwise the bonus will probably decrease to $1k/acre for now. When the fiscal year starts over in '09 it may be a different story.
The good news is my landman is going to get his co. to include a clause which states we can renege on the deal at any time prior to the draft being paid. That way, if by some miracle we get another, better offer (such as a check), we can take the better deal without any penalty.

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Permalink Reply by Bobi Carr ("parker") on October 14, 2008 at 16:58

J. Todd,

I would certainly get an attorney to check out that clause.

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Permalink Reply by insomniacnla on October 13, 2008 at 10:28

Malcolm,

You have to wait 90 days before you receive your bonus money? Did you sign an actual lease or just an intent agreement?

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Permalink Reply by MALCOLM WHORTON on October 13, 2008 at 11:33

I signed an Oil,gas and mineral lease.I have the draft check not a letter of intent.

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Permalink Reply by William W. Lynn on October 13, 2008 at 12:18

This is not in Claiborne Parish, but is less than a mile from the parish line over in Union Parish.....I was talking to my tenant this morning and he said some smaller
company is starting to drill right off the south side of Hwy 2 about 4 miles east of
Bernice. If I am not mistaken that is in Section 13. My tenant works as a "hot shot" driver, and gets to talk to the engineers. He says they are extremely interested in
the 9600 foot depth in that area. For you locals in Claiborne Parish, this is the Middle Fork bottoms east of Lisbon and for now, inside Union Parish. If this well is a good one, we might see some action in West Union and East Claiborne in Section 22.
There is a new, producing well just south of Bernice off Hwy 167 that is not far from the Middle Fork bottoms between Dubach and Bernice, and that well came in around 9000 feet, so maybe that is the magic number now. We can always hope.

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Permalink Reply by William W. Lynn on October 13, 2008 at 12:32

It might take twenty years to drill all the land the big companies have leased, but I would be surprised if anybody out there signed a twenty year lease. In three years those high dollar leases will start to expire and unless there is drilling activity (which requires drilling rigs, which are in short supply for the foreseeable future) on the leased land, it goes up for grabs again. By the way, my tenant in Bernice told me that some of the drilling rigs that are currently in the upper midwest are being readied to move to Louisiana. I would think that a company with a surplus of equipment would be in pretty good shape right now whether they have leased land or not. Just a guess, but if CHK paid out $20K+ per acre, they will find a way to make use of that land before the lease expires whether it's one of their rigs or one leased from another company. Am I off base in this mode of thinking?

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