Replies to This Discussion

Permalink Reply by po boy on August 16, 2008 at 16:31

You have to buy it back?
There is no incentive for a contract at any price?
Am I understanding you to say that urban rooftop acreage is worth what some of us are getting?

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Permalink Reply by Two Dogs, Pirate on August 16, 2008 at 16:56

If I buy a bad lease then I have to pay the money back to the company. If I buy 100 acres at $100 then I can pay it back but if I buy 100 acres X $15,000 I may be in trouble.

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Permalink Reply by po boy on August 16, 2008 at 17:11

So I can safely put that question to rest. There is no incentive to "keep the numbers up" or "Lease at any cost".
Thank you!

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Permalink Reply by Ronald on August 17, 2008 at 16:57

We accepted bids last week on our land and were surprised that neither of these companies bid on it. We were told that they may be focusing elsewhere.

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Permalink Reply by Coonman on August 18, 2008 at 10:57

No one ever calls you back @ Southern Land & Exploration

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Permalink Reply by George James on August 18, 2008 at 10:53

$2MM would be a cheap well....try $6MM/well.

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Permalink Reply by J on August 18, 2008 at 10:40

I've heard of dry holes being drilled in the Haynesville formation (on the Texas side). Is this true? And if so, is this the reason for the pause in leasing?

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Permalink Reply by George James on August 18, 2008 at 10:52

I've got some land in Township-16-North, Range-16-West Caddo Parish, LA. Anyone heard of the going rate in the area? - Seems things have cooled a bit.

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Permalink Reply by herman on August 18, 2008 at 12:11

I know that a lot of the land in this area is "hbp" and therefore I can't tell you what this is leasing for but I do know this is a hotspot and hopefully good things are on the way from royalties.

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Permalink Reply by J Todd on August 18, 2008 at 11:45

Our offers were withdrawn for nebulous reasons but I learned Goodrich was already drilling in our section....thus our current lease will probably be held by production before it expires in Oct. 08. A landman with Chesapeake told me they are no longer leasing in Blanchard at the present time. I called Twin Cities a few weeks ago and they said they are currently only talking to people within the Shreveport and Bossier city limits. That's what I was told.....

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Permalink Reply by Amy Brehmer on August 20, 2008 at 3:48

Not any dried up, but we were just offered yesterday a buyout of our royalties on a Cotton Valley well already in our section. The offer, should the well continue to produce at its current rate, would take the investors 75 years to recover. I'm trying to understand why they would make such a handsome offer if they didn't anticipate a Haynesville Shale well erected in the section later. No investor in their right mind would start offering this kind of money to several royalty owners without at least a fair and reasonable rate of return on their investment. But, maybe they are big risk takers. I don't think we should sell, especially since the Land Mgmt Rep told me they could only put one well in each section, which I know is not true. I think this is the beginning of a new cycle where investors start making attractive offers to frustrated landowners, knowing it will likely make them millions in a few years when the Haynesville Shale is up and going. We are at a cross-roads and also are not sure if we should accept or continue to search for other bidders. We don't want to get the shaft like we did when we were first approached about the mineral rights.

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Permalink Reply by P.G. on August 20, 2008 at 3:55

Maybe you could put restrictive clauses in there to restrict the deal to that one well as is!

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