Replies to This Discussion

Permalink Reply by Angela on June 12, 2008 at 10:36

Do you mind sharing with me what attorney you used? Do you know of any town or neighborhood meetings going on?

Permalink Reply by Angela on June 12, 2008 at 12:40

In Shreveport, $10,700 (with the help of an attorney) is the highest I've heard about. However, as you mentioned, I'm sure there are many that have signed for higher and lower than that amount. Thanks for the info.

Permalink Reply by Kassi on June 15, 2008 at 8:42

I have heard (but not confirmed myself yet) that Foutainblue Estates in Stonewall leased for $12,500.00 per acre and 25% royalty). That is $5,000.00 more than the neighborhood across from the school leased for just 2 weeks ago ($7,500.00).

Permalink Reply by lanadan Ds3 on June 14, 2008 at 9:21

I have land just outside of Stanley on Hwy 191 and have been offered 7500/acre. I do not know of anyone else with unleased land in this area. I have no way of knowing if this is good for this area or if I should wait for more.

Permalink Reply by Kassi on June 15, 2008 at 3:30

Lanadan, You need to wait. There are industry reports coming out next week that will increase your bargaining power. At this point less than $10,500.00 with 25% royalty is not worth bothering with. I think in the next 1-2 weeks it will start increasing to $15,000.00. I know there is at least one case in Shreveport of $14,0000.00 per acre.

Permalink Reply by msfva on June 15, 2008 at 7:23

Kassi, I'm going to trust you here that someone you trust has told you this. Your word carries far more weight than any other landowner in the Haynesville Shale, and so I'm going to hold out with you (for now).

As you go along, can you start to raise issues on royalty percentages? It's not just up-front money. Some of us might like to trade part of the bonus for increased royalties. As you talk with people, and get the word out, could you make a point that landmen ought to make different options available to the landowners?

Keep up the good work. You are responsible for a lot of good people getting their fair share.

msfva

Permalink Reply by Kassi on June 15, 2008 at 8:36

Hi,
Thank you for the kind words. As to the royalty issue. I think 25% should be the absolute minimum. I am putting together 3-4 options for my neighborhood to look at. The options include varying upfront bonuses nad royalties. One option is to take a lower up front (12-15,000) in return for a higher royalty (25% at first then increase to 30% once drilling costs have been recouped) of course I think we need to ask for gross royalty not net royalty as well. The most important thing is for people to stick together. One person with 3 acres is nothing compared to 30 people with 3 acres.

Permalink Reply by TCB DS3 on June 17, 2008 at 9:17

My family owns 223.33 acres just south of Mansfield. We have two landmen seeking leases. We countered at $12,500 per acre and 25% royalty.

What are the names of the reports that will be published next week? I read the article of the prices the state received on its leases which was $11,750 to $15,895.

I also want to put an agent clause in our lease. Does anyone have such a clause or know how I should word it?

I would appreciate the name of a good attorney and how much he would charge to review our lease.

Thanks for any help with these questions. I will keep you udated as our lease developes.

Permalink Reply by louis jackson on June 23, 2008 at 7:53

do you know where i can get those reports and how much they will cost? we have 5 acres in desoto parish just outside of mansfield and the first offer was only $2,000.00. without even responding to that offer i rec'd an email offering $5,000-3yrs with 25% royalties. i thought that was a bit strange for him to go up w/o any response from me so as a result i have not signed. oh! this was from costal out of lafayette. anyone w/ any info will really be appreciated. my email: ljackson1244@yahoo.com. thanks a million, louis

Permalink Reply by olddog573 on June 17, 2008 at 16:16

have you been paying attention to what chspke has paid to partner and buyout acreages from companies? WOW! paid 620 million for 4500 acres. THATS OVER $137000/ACRE!!!!!!!!!!!!!!!!!!!! also the deal with goodrich at 178 million for 50% of 10 thousand acres!!!!!!!!!