Replies to This Discussion

Permalink Reply by CMI A1 on August 15, 2008 at 16:38

Yes, thank you John. You did not let me down. I have been telling a lot of people about the scare tactics you guys like to spew and what they could come on here and read about. I have that crap down almost word for word. I do a great land man impression. You guys will have to see it one day.

The fact is... I could potentially buy a pipeline and build a drilling rig. You boys can't build a shale. So, play nice. Cause I assure you that you all need us more than we need you. Without bonus's and royalties, I just keep living life as usual. Without minerals, you fellas are out of business.

You guys and gals need to call into headquarters for some new deceiving rhetoric. The other stuff is getting old plus I need some new material.

• ▶ Reply

Permalink Reply by reg on August 15, 2008 at 16:58

thank you cm1a1

• ▶ Reply

Permalink Reply by GEORGE D BROCKNER on August 16, 2008 at 3:36

THANKS CMI A1, Good stuff. I agree with you to a point. It's true, we got the gas under our houses. O&G need it. They can recover it, we can't. We can damn sure keep it under the ground or we can make the best deals possible with O&G. I don't like their tactics any more than I like to deal w/lawyers, doctors, bankers, insurance co.'s, etc. We can make a point and continue to waller in poverty or we can learn how to deal with these guys. The best deal is one that benefits everyone involved. Thanks to you and others on this site, people like me can learn to deal with these guys and become a little more savvy at their game. It is a game and I want to play.

• ▶ Reply

Permalink Reply by Father of the Year on August 16, 2008 at 8:10

Excellent post CMI. For someone who owns 40 acres or less in a unit, it seems to me that not leasing is the slam dunk dominant play.

• ▶ Reply

Permalink Reply by ETOilman on August 15, 2008 at 15:56

No one is being taken advantage of by any of the leasing companies over there. Being a landman for over 25 years, I too have grown tired of the banter on here myself. Like I asked, what if NOBODY leases? Neighborhood HOA gonna pool together some 7 million to drill their own well? Of course not. It is to your advantage to lease.

• ▶ Reply

Permalink Reply by reg on August 15, 2008 at 16:34

It is to your advantage to lease, but the technolgy today that was tested and proven in the Barnett Play clearly shows that these companies are not speculating on the presence and amount of natural gas in our area.

Explain how over 10,000 horizontal wells were drilled in the Barnett shale with no dry holes. At what point is it not specualtion?

Also, in reading information given to potential investors in these wells, no where is it mentioned that dry holes are even a possibility.

I strongly suggest that if neighborhood group comprise a section that they form a group and ask a company to drill within one year, that they waive all bonuses and seek a 40% royalty. I bet a competitor of the big two would jump at that! this would cut drilling costs by the typical ($20,000 x 640 acres) $16,000,000 needed to lease up the land.

• ▶ Reply

Permalink Reply by lee on August 15, 2008 at 17:14

I agree with your post! I am currently a land owner and see things as you do. Now I will say I would not take a very low amount per acre. But these lease bonus that these people are being offered is rediculous and I would have dropped my pen befor I signed I would have been so excited. Unfortunatly, the way it is looking my land is not in the shale and will not have that opportunity.

• ▶ Reply

Permalink Reply by Snake Stewart on August 15, 2008 at 16:07

$11.80 mcf as of 8/6/08 on royalty check from member.

WWWWWAAAAAAAAAAHHHHHHHHHHHHhhhhhhhh!!!!

• ▶ Reply

Permalink Reply by reg on August 15, 2008 at 16:21

Once again, the information shared should be accurate. I think that if people can see the calculations, then they can make an appropriate decision on leasing.

For instance, knowing that these wells payoff quickly would cause more landowners to turndown a bonus and seek a higher royalty and add clauses for production within one year of signing of lease. This has been successful. A homeowners association could agree to take a 10,000 per acre bonus and a 35% royalty if production in paying quantities starts within 12 months of lease signing. This would cut up front costs for the companies and help the landowners.

• ▶ Reply

Permalink Reply by reg on August 15, 2008 at 16:40

By the way, even if you run the numbers at 6.00 per mcf on a 5000 mcf well. The well pays off a 6 million dollar drilling cost in 200 days, not several years. This payout would be based on a low price per MCF and a smaller than average HS well. I would still be better off than my leasing neighbor.

• ▶ Reply

Permalink Reply by P.G. on August 15, 2008 at 16:53

Your assuming that math formula is correct.

• ▶ Reply

Permalink Reply by reg on August 15, 2008 at 17:00

I got it from a oil and gas attorney.
The equation is right, but the component parts change.

• ▶ Reply

• ‹ Previous
• 1
• 2
• 3
• 4
• …
• 6
• Next ›
• Page