Austin Chalk leasing in Louisiana

Question:

All of the large acreage landowners surrounding a small (150 acre) local subdivision in north central West Feliciana Parish have been leased since before Christmas to as recently as week before last. A few small acreage landowners in the 150 acre subdivision also recently leased with EOG ( within last 3 weeks) and several had appointments to sign leases. Suddenly about 2 weeks ago the subdivision acreage holders whose lease signing appointments were pending were called by the leasing agent who cancelled these lease signing appointments and no one has heard from them since. The reason given was that EOG was reassessing the boundaries? Surely, the geology hasn't changed and at least 2 pending leases of large acreage owners in the vicinity of the subdivision were finalized after the smaller acreage appointments were cancelled.

The landowners who did execute lease are now wondering whether their bonus checks are going to arrive.

Why cancel pending lease signings on acreage in the dead center of an already large leased acreage block with the excuse of boundary reevaluation? I could understand if the subdivision was located on the edge of the previously leased acreage block, but not in the middle of it. All the surrounding acreage is either leased by EOG or Conoco Phillips at rates from $600 to $1300 per acre bonus and 20% royalty. Most recently(in the past 2 weeks) $900 per acre - both small and large landowners getting the same deal. The subdivision appears located in the proximity of the boundary between acreage leased by Conoco Phillips on the south side and EOG on the north side.

Anyone care to speculate on what's going on?

Tags: Austin, Chalk, leasing

Views: 6362

▶ Reply to This

Replies to This Discussion

Permalink Reply by Steve on March 30, 2018 at 10:43
I was told today that landowners have been receiving their promised bonus payments, one got his yesterday. Also, 2 unit applications were recently filed by ConocoPhillips for one well in WF and another in EF. Maybe someone can give us the details, e.g ; unit size/location, etc. ?
Permalink Reply by Steve on March 30, 2018 at 10:46
Freeland Field/ConocoPhillips Company – AUS C RA SUA – East and West Feliciana Parishes – 3/26/18



Northwest Jackson Field/ConocoPhillips Company – AUS C RA SUA – East and West Feliciana Parishes – 3/26/18
Permalink Reply by Skip Peel - Mineral Consultant on March 30, 2018 at 10:49

Thanks, Steve.  I'll post the applications when they are entered in the database.

Permalink Reply by Joe Aldridge on March 30, 2018 at 12:05

They are 1800 to 2000 acre units. That tells me they are long lateral wells. Probably 8,000 to 10,000 ft.

Permalink Reply by Joe Aldridge on March 31, 2018 at 3:06

Jay, this looks like a 3rd. unit they are applying for. The other two are South and West of this one. This appears to be up near the MS line. The other 2 units have wells staked. And the units are in both EF and WF. So they are along the parish line. This one is not. Still, I think these are long lateral wells.

Permalink Reply by John Lann on March 31, 2018 at 3:17

Joe,  Can you help me and mention a town or community that this is close too.  What parish line are you referring too, the East & West Fleciana or East Baton Rouge & West Feliciana.  To me it looks like it is taking in some or part of Jackson, McManus, Ethel

Thanks, John   EBR

Permalink Reply by Skip Peel - Mineral Consultant on March 31, 2018 at 3:20

AUS C RA SUA, Northwest Jackson Field, is located on Hwy. 421 approximately 3.25 miles north of the Hwy. 421/Hwy. 10 intersection on the western side of the town of Jackson.

Permalink Reply by John Lann on March 31, 2018 at 3:38

Thanks Skip, that is very clear.   Can you give me an about location of the two that Joe mention that have been staked.

John EBR

Permalink Reply by Skip Peel - Mineral Consultant on March 31, 2018 at 3:49

No.  I'll post the applications when they are available in the database.  The applications will include a plat that will make clear the locations.

Permalink Reply by John Lann on March 31, 2018 at 4:06

Thanks, and those postings will be appreciated when you do them at that time.

John

Permalink Reply by Joe Aldridge on March 31, 2018 at 6:02

They are North of the Thompson Creek bride on Hwy 61.  They straddle the EF and WF parish line. There is no town near. The only thing near is the  Bluffs Golf Course and Development.

Permalink Reply by Skip Peel - Mineral Consultant on March 31, 2018 at 6:41

Joe, got unit designations and field name(s)?

RSS

Support GoHaynesvilleShale.com

Top Content 

1 Looking Back At The Haynesville Shale - A Retrospective

Looking Back At The Haynesville Shale - A Retrospective
2 Pending Public Oil and Gas Hearings

Pending Public Oil and Gas Hearings
3 Arkansas Smackover Lithium Play

Arkansas Smackover Lithium Play
4 Comstock October Presentation

Comstock October Presentation
5 Aethon looks for Buyers of its Haynesville Assets

Aethon looks for Buyers of its Haynesville Assets
6 Notice Emails Are Back! Please review how they work.

Notice Emails Are Back! Please review how they work.
7 Arkansas O&G Commission unanimously denies royalty rate application for lithium extraction

Arkansas O&G Commission unanimously denies royalty rate application for lithium extraction

Blog Posts

The Lithium Connection to Shale Drilling

Shale drilling and lithium extraction are seemingly distinct activities, but there is a growing connection between the two as the world moves towards cleaner energy solutions. While shale drilling primarily targets…

Continue

Posted by Keith Mauck (Site Publisher) on November 20, 2024 at 12:40

Not a member? Get our email.

Groups



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

Badges  |  Report an Issue  |  Terms of Service