Replies to This Discussion

Permalink Reply by shaleshaleshale on July 29, 2010 at 5:18

heard the same thing. both pinebelt and munuco are offering $300 now...

Permalink Reply by judy hastedt on August 1, 2010 at 11:03

would that be in union and claiborne parishes? judy

Permalink Reply by Larry on August 2, 2010 at 2:02

I was offered 225 and 20 percent royalty about a week a go. I asked for 25 percent royalty and was refused this so I didnot sign. this land is located northeast of Bernice. The lease they are wanting me to sign is for 4 years and 4 year renewal this seems to long.

Permalink Reply by shaleshaleshale on August 4, 2010 at 8:39

don't know about claiborne the landowners that told me they signed at $300 are located in Union Parish... They also signed 3 year deals with options for additional years (4) total to be renewed on a year to year basis after the original are up

Permalink Reply by RAY on August 2, 2010 at 11:43

Any change in the length of contract.That's where these guys are getting us. I'm holding out for shorter term.

Ray

Permalink Reply by Two Dogs, Pirate on August 2, 2010 at 13:02

Ray ask them to use a rental lease form like what is used in South Louisiana and by the state. They would have to pay you each year to keep the lease in term. You may ask for something like $100 per acre per year. I think that 4 + 4 lease is a crock.

Permalink Reply by Tree Farmer on August 2, 2010 at 11:35

Here is one consideration it is possible that a sufficient number of acres will be secured to allow them to begin the play. If so, they may want to wait until they determine if there is the amount of production that many of use believe exists. If so, then the next round of leasing will be at considerably higher amounts. If the play does not materialize then those who hold off may find there no longer exists any interest in leasing. It is a crap shoot either way.

Permalink Reply by william mitcham on August 2, 2010 at 14:04

AMEN

Permalink Reply by Mary Alison Anders Knighton on August 2, 2010 at 16:06

Yes tis a crap shoot either way; no lease is exactly the same. I feel comfortable with what I signed. This is a new formation. I believe it will cost more to get to where it all is.. if any.. however different and new...I am no expert but I feel great about what I leased..also tis not over until the fat lady sings.

Permalink Reply by shaleshaleshale on August 4, 2010 at 8:42

tree farmer makes an excellent point. until some wells are drilled and results are proven it is a guessing game as to what will happen with this

Permalink Reply by Tree Farmer on August 4, 2010 at 13:31

A forest land manager friend pointed out that there has been no interest in drilling in Union Parish to speak of for the past 30 years. I have also talked with a couple of old oil field hands and they have suggested that given the size of the leasing effort (I am told 200,000 acres) that four years is not an unreasonable amount of time since it is most likely that the wells will be placed in units which means that they may not get around to drilling in any one person's unit for two or more years.

I also talked with a lady who leased in the Eagle Pass (South Texas) play and she was a former landsman. Her take was that four years is not an unreasonable time given the magnitude of the acreage. As many an old timer has said " a bird in hand is worth 2 in the bush" and since the bird has not been around for the past thirty years, it might be prudent to grab it now that it is here and before it flies away.. It would be unfortunate to let 12 months (3 vs 4 years) stand in your way.

If you can get 25% royalty vs 20% that would be great. Just make certain that you are talking about post-production free royalty. It is likely that 20% free of any post production costs will net you more than 25% with post production costs added.

Permalink Reply by judy hastedt on August 4, 2010 at 13:41

it's the option for another 4 years that has us feeling like we're looking at 8 years. BUT, your thoughts help my feelings. thanx

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