$2,000,000 lost because he wanted $2,400,000 in Sabine

So I'm in the Desoto courthouse today and a young guy (I guess about 24) sitting in the hallway on a folding table working on his laptop gets a cell phone call. It's like talking in a library, you can hear conversations no matter how low somebody tries to talk. He goes on to tell his friend on the phone about how he was working on a 200 Acre tract of land in Sabine. He offered $10,000 an acre on behalf of Chesapeak. The land owner said he wanted $12,000 so the guy says he would take that offer back to Chesapeak. I didn't catch in his story how long this process took but after he called in the counter offer his boss told him that they weren't taking any new contracts in Sabine. If there wasn't already a signed leased they weren't making new offers. The land owner called him and said "so what about my $12,000 an acre?" He told him they couldn't do that, so the land owner said "ok, I'll take the $10,000". He says "no, you don't understand, we aren't even offering that now". In telling the story to his friend on the cell phone he was taking great joy in the fact that the entire $2,000,000 was now off the table. I got the feeling he is tired of working all the back and forth negotiations.

Don't ask me any details because I do not know anything more than what he was saying on his end of the conversation. I would guess the land owner will get another offer from somebody at some point. It was just very interesting to hear such numbers. That guy was going to bed one night thinking he's got at least $2,000,000 in the bank and then the next day he's got nothing. I'll be looking in the newspaper to see if some wife killed her husband because you know he was saying to her "don't worry, I know what I'm doing."

Views: 178

▶ Reply to This

Replies to This Discussion

Permalink Reply by Coonman on August 14, 2008 at 6:55
Pat you must be a landman hanging out with other landmen at the courthouse..If so is this the kinda stuff they like us to hear to make us sign?
Permalink Reply by RAY on August 14, 2008 at 7:12
Pat,
ever heard of a "plant", think about it :
a landman at the courthouse giving a lesson on being greedy.
then again,you might be the plant.
Permalink Reply by CBT on August 14, 2008 at 7:15
Hmmm...

If a landman is talking specific numbers on the phone where others can hear, he is being UNETHICAL in the line of his business since specific numbers and land deals are all contractual in nature and therefore CONFIDENTIAL from a business perspective. Owners can talk all they want, but it seems curious that a landman would put himself out there talking numbers, especially where others could hear. I have to agree with Tiger and Ray...sounds like an acting/plant job to me!
Permalink Reply by po boy on August 14, 2008 at 7:24
"talking in the halls" wiyh yhe intention of being overheard is an established management style, and effective way of affecting change,spreading info,dealing with problem employees,etc without getting directly involved.
Also beinf considered, effect way of spreading propaganda/ this must be taken into account
And he may have been talking to a dead phone to seem important.

The gas is there. The market is there. The real prize is the long term royalities-signing bonusus are just gravy anyway.
Permalink Reply by Sam Heller on August 14, 2008 at 7:43
Greedy folks, just relax. It will come. If your land really has minerals they will be obtained, if worthwhile. If an offer is not enough for you to have a new truck to drive to Sunday School, ignore it and wait to be forced into a pool. We are really starting to make a name for ourselves. I overheard a conversation about North Louisiana landowners in Ogden Utah of all places. Halliburton workers out of Rock Springs, Wyoming discussing what they have heard. I really thought is was hilarious. Now I do not know.
Permalink Reply by po boy on August 14, 2008 at 7:47
Oh Teah, they are talking about us in Germany, England, LA,NY,and Washington.

USE MORE GAS-Drive the price back up. I wanna put MAG wheels on mah Rusty Doublewide, Maybe even INDOOR plumbin'! (for the new york times)
Permalink Reply by Snake Stewart on August 14, 2008 at 9:19
Hello Mr. Hellar , I truely am conserned about what people in Ogden, Utah and Rock Springs, Wyoming think about me.New York Times is a great read as well............NOT!
So what if I get pooled. This is my opportunity to make or break, Period.What difference does it make to people half way across the country anyway. We are in a spot that many would love to be in. I would hope that if you were in my spot you wouldn't screw it up by signing for pennies on the dollar. Then look how bad those cats from Wyoming would be talking about the guy that blew his one chance.
Nobody said this was easy.If it were that easy to roll the dice, then nobody would have signed in the last month. Even the people with the monster bonuses sofar may be shaking their heads 2 years from now.
Nobody knows for sure but I sure as heck can't take your advice from all the way over there.
Depending on if you are buying or selling , would it be better to be called greedy or stupid ?
Just my thoughts. Thanks for the post.
Permalink Reply by Sam Heller on August 14, 2008 at 9:37
I am not from there, my roots are here. I have been low balled three times myself. I said no each time and have yet to hear back. I did not say anything against anybody's forced pool. I do not know if I would have the gonads to turn down a big offer as I have yet to have to think twice on what they have dangled. I am simply voicing the way I cope. I do not care what any citizen thinks.

I enjoyed the post about the overheard conversation, and I do not doubt the scam angle. I have just resigned myself to being forced or having nothing. I am just thinking about timber. That was all I ever counted on. No offense intended. It is interesting to hear other folks speak of our predicament. Thanks Al.
Permalink Reply by Snake Stewart on August 14, 2008 at 9:57
Depending on your last lowball offer , I bet I gotcha beat. $750 about 5 months ago. This is a form of therapy for me as well. Sometimes you can tell when I have had too many shale calories in my diet (Ain't that right Doc ).

There has been an alarming amount of O&G slanderer's on this site of late and I am entirely too defensive. Even when I am not , my writing style seems to make me sound far more over the top then I really am( Keep it to yourself Earl!)HA! HA! No offense taken my Heller. Sorry if I was jumpy.
Permalink Reply by Pat on August 14, 2008 at 7:46
Don't over think it guys. It wouldn't be the first time a land owner lost a deal because of bad timing. I am sure there are just as many stories of land owners getting more money because they waited/negotiated more. I'm not even suggesting the guy was being greedy. I'm sure I would have asked for more too and hoped to settle on some price we could agree on that was more than they were offering to start. I just found it be interesting how there was a two million dollar offer and then it was gone and was thinking how it would make me sick. I don't think it should make anybody else adjust their own personal negotiations with any company for a lease. Every situation is different. I just found it very interesting and thought others might like to hear the story. I don't think it defines the current market.

Somebody asked why I was in the courthouse. I was doing title research for friends and family. And, landmen can do work in several different parishes at once. You can also be a landman and never do O&G work or never talk to a landowner. Some landmen just do the research of the documents for somebody else to do the offers.
Permalink Reply by Bobi Carr ("parker") on August 14, 2008 at 16:16
You may not be doing the leasing but if you are a landman you are therefore doing oil and gas work.

Otherwise you are abstracting title.
Permalink Reply by Iris on August 16, 2008 at 11:13
For every no offer I receive...I can be glad there might not be a Saltwater disposal site on the next corner....or someone's land being torn up for an ugly rig...heavier traffic & noise...que sera, sera

RSS

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

Badges  |  Report an Issue  |  Terms of Service