Replies to This Discussion

Permalink Reply by Mark on January 18, 2009 at 3:37

This mentality never ceases to amaze me. Please go figure out what it cost (per acre) to put an acre into production (HS). "They" are not out here to trade dollars...they are looking for a multiple return on their money. "They" are not surprised when people wont sign for 500 an acre, they just move on. The surprised people will be the ones who eventually sign for 500 or less. Greed phase is over as far as the lease buyers are concerned...lease sellers have not caught on.

Permalink Reply by intrepid on January 18, 2009 at 15:39

Mark Smith,

Not to put too fine a point on it but, if you ultimately leased your land for over 30 times the original offer (has happened frequently ) who is greedy? You for 'holding out' or the lessee who tried to lowball you for 30 times less than they were willing to pay? Nobody put a gun to their head to make them increase their offer 30 times more than originally.

The O&G companies are not paying any more $$ than they have to to get what they want. They would pay nothing if they could get away with it.

Permalink Reply by SPYDERGT on January 29, 2009 at 16:25

Hi Intrepid,
I was contacted today by a land man (Al Carrills EOG 936-652-5287 offering $1,000 an acre plus 1/4 royalties. I only have 4.5 acres. Is that a fair offer with so little land?

Permalink Reply by Sandstone on January 29, 2009 at 18:22

SPYDERGT, would your land happen to be close to Toledo Bend?

Permalink Reply by SPYDERGT on January 29, 2009 at 18:27

Hi Sandstone,
My land is in the James Community. It had been leasing for $5,000 last year, but then they renigged. Then some have told me it was leasing for $2,000/acre with 1/4 royalties. The land man who contacted me offered me $1,000, but I told him that I heard it was $2,000. He said he would ask and see if he could get me $2,000 with 1/4 royalties.

I can't pull the map up either. Sounds like it would be some good info to know where all the drilling is taking place ni Shelby County. I am so happy that we have this site to chat about what is going on. I'm not signing for $1,000 until I chat with others in the Shelby county area. I just want what is fair.

Permalink Reply by Sandstone on January 29, 2009 at 18:42

Is EOG EnCana or Eagle? I think that is wise. No matter what, I would certainly hold firm on that 1/4. I expected them to come in cheap this first month of the first quarter of the year.

Permalink Reply by Les Bamburg on January 29, 2009 at 19:00

Sandstone, EOG is a separate company from Eagle or EnCana. EOG is one of the largest independent O&G companies in the US and has a lot of experience with drilling shale gas wells.

Permalink Reply by Sandstone on January 29, 2009 at 19:30

Thanks Les B.... So many players, so little knowledge..LOL

Permalink Reply by SPYDERGT on January 30, 2009 at 13:14

Thanks Les B. I appreciate that information. I am going to just sit back for a couple months and see what happens. I only want what is fair.

Permalink Reply by intrepid on January 30, 2009 at 14:48

SPYDERGT, I can't tell you what is 'fair' for you. I can tell you what I think. A lot of people claim that the Haynesville Shale runs into Shelby Co. I think if it does that $1,000 per acre is low especially if you are talking about a 3 year lease. However, if you were to get drilled soon and gas went up you would be good. 4.5 ac doesn't give you a lot of bargaining position. I saw below that you asked for $2,000 per ac and 25%. I think you'll probably get it. Keep us posted.

Permalink Reply by SPYDERGT on January 30, 2009 at 15:41

Thanks Intrepid. I guess I will just sit tight for a little while and see what happens. $4,000 won't make me or break me!

Permalink Reply by intrepid on January 15, 2009 at 18:49

Welcome back, Charmine! Good info!

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