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Permalink Reply by RONNY on October 30, 2020 at 14:35

Anyone have contact info for a Landman who may be taking leases in current Mammoth areas of interest?

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Permalink Reply by Skip Peel - Mineral Consultant on November 1, 2020 at 6:53

I suspect that Mammoth Minerals is more interested in selling what they have and not so much in adding to it.  You never know why leasehold/working interests end up on EnergyNet.com, an online mineral market place.  In some instances I think it may be an effort of last resort after sales efforts with targeted industry members and private equity firms have proven fruitless.

The first obvious potential problem with the leasehold is location.  Although in an area mostly proven for Haynesville Shale reserves (not Bossier Shale reserves), much of the area is urban and fairly densely populated.  Tough to find a surface location or acquire pipeline rights-of-way.  The second problem is trying to dollar out how to make a profit with those added costs and depressed natural gas prices with a 75% net revenue interest (leases are at a quarter royalty).  Most recent leasing efforts around the periphery of the proven Haynesville fairway have been looking to lease at something less than a quarter.  Third is the remaining term, 12 months, on about half the acreage.  Any entity looking at that time line and the extra hurdles to development would find it daunting.  The remaining acreage with the two year extension option would make a better option should any entity be interested but then again the location of those acres may be a problem.  If it's out on the far western or southern edge where surface locations and rights-of-way are less of a problem, maybe if the option cost to extend is not burdensome someone might be willing to take the risk.  The problem with the offset rigs and permits is that they are just far enough west to be on the edge of the city limits or outside and less densely populated, think far west end of Cross Lake and further west from there, Blanchard down to I-20.

RONNY, just my opinion and I could be wrong.  If you haven't already contacted Mammoth with your offer to lease, here is their contact information.

Business:	MAMMOTH MINERALS, LLC
Charter Number:	43179338Q
Registration Date:	8/28/2018

 

Domicile Address
	7670 WOODWAY DR
	STE 357
	HOUSTON, TX 77063

 

Mailing Address
	7670 WOODWAY DR
	STE 357
	HOUSTON, TX 77063
Principal Business Office
	7670 WOODWAY DR
	STE 357
	HOUSTON, TX 77063
Registered Office in Louisiana
	3867 PLAZA TOWER DR.
	BATON ROUGE, LA 70816
Principal Business Establishment in Louisiana
	3867 PLAZA TOWER DR.
	BATON ROUGE, LA 70816

 

Status
Status:	Active
Annual Report Status:	In Good Standing
Qualified:	8/28/2018
Last Report Filed:	7/30/2020
Type:	Limited Liability Company (Non-Louisiana)

 

Registered Agent(s)

 

Agent: C T CORPORATION SYSTEM Address 1: 3867 PLAZA TOWER DR. City, State, Zip: BATON ROUGE, LA 70816 Appointment Date: 8/28/2018

 

Officer(s)

Additional Officers: No

 

Officer: PETER B. GRUNDBERG Title: Member Address 1: 7670 WOODWAY DR Address 2: STE 357 City, State, Zip: HOUSTON, TX 77063   Officer: VIGNESH PRODDATURI Title: Member Address 1: 7670 WOODWAY DR Address 2: STE 357 City, State, Zip: HOUSTON, TX 77063

 

https://www.linkedin.com/in/vigneshveer/

https://www.glendalecap.com/leadership

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Permalink Reply by RONNY on November 5, 2020 at 0:06

thanks Skip

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Permalink Reply by Skip Peel - Mineral Consultant on November 5, 2020 at 5:14

You're welcome, RONNY.

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