Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on November 6, 2013 at 3:44

Better to wait until you are approached with a lease.  However in the meantime you might do some research.  There is a good bit of shallow production in your section and general area.  Do those wells hold deep lease rights?  Or just the shallow rights?  Are you one of the few unleased mineral interests in your section?  Does the location of your 60 acres lend itself to a potential surface location such as a well pad?  There just isn't much incentive to lease new lands at this time.  Hopefully that will change in a few years.

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Permalink Reply by Paticia Janet Hendrix on November 6, 2013 at 3:51

We have shallow oil production but leased deep rights for gas to Cheasepeake. We sold the land years ago but retained the mineral rights.Thank you for the advice. I think I will just wait for someone to approach me.

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Permalink Reply by Skip Peel - Mineral Consultant on November 6, 2013 at 4:00

My comment about shallow and deep rights is directed to the status of the other acreage in the section, not to your 60 acres.  Haynesville Shale development is based on drilling units that are one or more sections.  An operator offers a lease with the intent to develop (drill).  An operator needs to be able to acquire the development rights to a majority of the acres in a unit to do so.  60 acres, though a decent size mineral interest, is less than 10% of the acres required to form a unit.  In other words, your mineral interest is directly related to your neighbors in the section and possibly an adjoining section.

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Permalink Reply by Paticia Janet Hendrix on November 6, 2013 at 12:25

Is there a way for me to find out who has the land around our 60 acres leased? It sounds to me like those companies are the only ones who might be interestedin leasing my property. Thanks, Jan

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Permalink Reply by Skip Peel - Mineral Consultant on November 6, 2013 at 12:36

If you know the names of the owners of minerals in your section you can search the Clerk of Court's public records at the courthouse.  However it is likely that they are in the same situation as yourself.  There are a number of possibilities as to why your lease has expired without being drilled but the current reality is that no energy companies are active in picking up new leases.  They have shifted their drilling budgets to other plays that produce oil or wet gas. Best to keep track of developments here on GHS and wait for the next round of Haynesville Shale leasing.  I suspect that it will come eventually but it may be some years in the future.

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Permalink Reply by Paticia Janet Hendrix on November 7, 2013 at 3:12

Thanks for the information Skip. I will just hope it isn't too many years in the future or I won't get any benefit from it.

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Permalink Reply by Two Dogs, Pirate on November 6, 2013 at 13:27

Most of the land in your area is HBP by real old leases with most of it being from the surface to China. I gave a fellow a million and a quarter for a lease and $480,000 of that was for 80 acres Section 35. The company didn't even include Section 36 in our buy area. The man I leased didn't even know he owned the minerals other than his uncle had left him some mineral interest that payed him a few bucks a couple of times a year. His uncle was a banker that bought and sold property back in the 1940s - 1960s and dabbled in oil & gas on the side.

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Permalink Reply by Paticia Janet Hendrix on November 7, 2013 at 3:12

Wow Two Dogs,Pirate! That would have been a nice surprise!

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Permalink Reply by Joe Aldridge on November 6, 2013 at 15:33

Paticia,

Make sure CHK files or has filed a release in the Clerk of Courts office to clear the title to the deep rights. This may make a difference as far as some company understanding that the deep rights are separate from the shallow ones. 

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Permalink Reply by Paticia Janet Hendrix on November 7, 2013 at 3:12

Thanks for that information Joe. I will be sure to check on that.

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Permalink Reply by 1kw6x71km1v37 on November 7, 2013 at 7:37

Money like that, who needs a well???

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Permalink Reply by ledlights on November 7, 2013 at 9:40

Yeah really. Chesapeake paid us $4000/acre (wish we had had more acres!) to exercise a one-year lease extension in Shelby County in the summer of 2011. They never drilled. Surprised the heck out of us, but we did not complain.

 

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