Good Morning Everyone, Well I have confirmed through several sources  that  the leasing in the Felicanas and Northern East Baton Rouge parishes is ConocoPhilips. The lease prices have gone from $250 an acre to $800 to $1100 per acre. So they have spent $80,000,000 to $100,000,000 in these three parishes in the past month. This is just the beginning. There is a lot of acreage still unleased out there.. 

Views: 5581

Reply to This

Replies to This Discussion

Congratulations, John.  Very comprehensive and helpful.

Skip, thanks for your complement.  I hope it does help.  I will try to get some othesr to join.

John

John, Thanks so much for the chronology. Great responses from the landmen. I'm the one that alerted Jeff Corbin  to what was  going on. I had been working with him on a right of way issue with Entergy and the company had laid him off. Nice guy he tries to make everybody happy.

Wow,  thanks John for posting that progression of lease offers.  where exactly are you located, we have acreage in central evangeline parish.  Things not as hot here!!

Thanks,  I guess I forgot to write East Baton Rouge Parish, the northern quarter,  8 miles from the Feliciana's.  We are taking our time hoping things get a little more than warm.

John

Thanks, If you go to http://ameliaresources.com, under prospects, he has 240,000 net acres, terms, 75% NRI and Best offer. Is this the same as the marketing of 222,000 net acres in the Louisiana-Mississippi Austin Chalk Play at the NAPE Summit in Houston, Texas, February 7. I know their is a difference in acres, but, not much. Barrell does not say what area either.

thomas, do you understand the 75% NRI?

No I don't, Can you help with that.

When you hear or read operating companies describe the value of particular leasehold, they often quote the Net Royalty Interest (NRI).  The 75% in the Amelia marketed leasehold means that whatever company acquires those leases will have a 75% interest in production.  The other 25% goes to royalty interests in those leases.  So Amelia gets the royalty difference between what private land owners leased for and 25%, if any.  For each acre that Amelia leased for a 20% royalty, they retain a 5% interest in any future production.

This is standard operating procedure for companies that generate prospects but rely on some other company to develop the leases.  There is nothing illegal nor unethical about this widely used practice.  It is however something that those considering a lease should know.  It is also worth noting that there is an obvious element of risk for Amelia and other prospect generators.  Prospects don't always work out.  Future production is not a given.

Thank you very much. From what I understand, In the 85,000 net acres sold, He charged the land owners 6% and on the 222,000 net acres in a meeting in Zachary, La, He said the charge would be 8%, is this the same as the NRI.

You're welcome, thomas.  I think NRI is something that all members considering a lease offer should know.

Skip,  Paul Vallhonrat, president of La. chapter of NARO  had called me yesterday to answer a couple questions I had ask.  He was the one that  told me about GHS.  I let him know that I had just signed up with you all and able to read some very interesting and informing post.  One of the names I mention was yours.  He said for me to listen to you, that you know ten times more than he ever would.  Anyway I am glad to be connected to this group.

John  East BR Parish

RSS

Support GoHaynesvilleShale.com

Not a member? Get our email.

Groups



© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service