My family and I have been contacted by a landman representing Arkoma regarding our land in Desoto Parish. They are offering $750 per acre, three year lease and 18.75%royalty. Not nearly what we received several years ago from Petrohawk but times have changed. Is this the going rate now? Anyone had any dealings with Arkoma?

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Well your lessors were misinformed or inexperienced. Kudos to you, but for the people of interest in this thread, NEVER TAKE A LEASE UNLESS YOUR ARE GETTING A CERTIFIED CHECK.

Exco can use capital from their Eagle Ford sales to buy interest in Haynesville. I'm not looking to argue with you here. I know that Blue Ribbon is working for Arkoma and that is what Arkoma does; they try building up a large lease interest and attempt to flip it for a profit. They also buy minerals/royalties.

I assure you, I am aware that brokers are hired to do leasing projects; but with Blue Ribbon, this is not the case. They could care less about any type of development in lands they are looking to lease unfortunately. 

Any interest that is unleased now-a-days has likely just become available due to leases expiring in <1 year. A lot of that can be attributable to Exco pulling out about 5 years ago. There are a lot of approved HA units (Exco & Chesapeake) throughout DeSoto with approved alternate wells that were never drilled and those leases have started expiring within the last year. Another example is the heavy leasing Vine has been doing in the last year in DeSoto. They are an operator. Leases are up thats my "speculation" for you Pirate. 

No one is going to drill for oil below the Haynesville when the price is below $40 either. Companies interested in oil will focus on the Permian and Eagle Ford.

And no Benny, Arkoma is not an operator. They may have participated. Big difference.

I would think that many brokers don't care if the prospect is drilled or not. They just want their cut of buying the leases. I came up through the era of the mom & pop drilling projects. I always prayed that they would hit.

As far as Exco goes I sure hope they make it but they are skating on thin ice at present.

Well this is just a patently false statement. Arkoma most certainly DOES operate and drill wells. 

Then please post a link to them from the appropriate database, benny.

Jay is so right.  The lease is binding.  And it could bind you and your heirs and their heirs for 100 years.  I am bound by leases from the 1960's (signed by my parents, not me), and they did not put in any of the protections that we take for granted today.  So take it seriously.

Before the shale very few people got 1/4 royalty and $750 per acre was unheard of. There are other formations besides the shale but the mom & pop wildcatters can't do biz anymore because of the shalers. This is what I was preaching when I first logged onto this site. Jay is right about the lease but the folks he works with probably couldn't have drilled the well they drilled in Rapides Parish last year if the mineral owners were demanding $750 and 1/4.

Jay,

  I don't have any knowledge whatsoever about this part of DeSoto Parish.  If an operator had intentions of drilling a well right now, what % royalty would he have to lease at to make the venture worth doing?  

  I have some friends that have 17 acres in 15N 13W.

  They have .1875 lease.  3 new wells were recently drilled in their unit.  I wonder if these wells would have been developed if most of the unit was leased at 25%.

 

Jay, did you find Exco a good company to deal with? We dealt with them on a lease we had in Desoto. Initially we were told we didn't have the minerals I went back to patent (after attorneys said we didn't have minerals) and found a mistake in the chain of mineral title. Exco listened when I presented that evidence, pulled the title out & researched it again and said I was right. That was 5 yrs. ago and I have never forgotten what a courteous, professional land man I dealt with. I assume he lost his job with the employment cuts but that experience and their diligence to correct something wrong has stuck in my mind. It hurts to see their stock crashing as it has in last few months.

We have been extremely pleased with EXCO. We Leased some minerals in Mansfield to EXCO. When I enquired about when we might expect royalties, they were surprised: CHK drilled the well, and did not even ask them to participate, so they did not know there was a producing well. EXCO is making royalty payments to us "out of hide".

I wish all our leases were with EXCO.

Stephanie, I am curious of the section your property is in? I have a couple of tracts in the same township and range that are unleased. Thanks

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