Replies to This Discussion

Permalink Reply by lanadan Ds3 on June 16, 2008 at 11:01

Shelby, where is your land? I have been offered $7500 by Chesapeake with 1/4 royalty. I have not signed the lease as I want certain addendums added. I am in section 20 11n 15w. You are right, it is difficult to know what is going on in this area.
From what I have researched, land in my area was first leased by Pan American operators then "flipped" to Classic Hydrocarbons. On Jan 1, 08 these leases and several producing wells were sold to Chesapeake. Before Classic sold, they had received a permit to put in a horizontal well in sec. 28, 11n 15w with the lateral extending under sec 21. This permit has now expired. The question that should be asked is, What kind of information did they have (geological) that would make them willing to spend 5 to 8 million on a horizontal well? I had agreed to 7500 but I'm thinking I want to wait to see what happens over the next several weeks.

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Permalink Reply by shelby on June 16, 2008 at 14:14

lanadan,
Thanks for the information regarding activity in this area. I am also in township 11-n 15-w Sec.17. It does sound as though there is planned activity, and I know that Petrohawk has leased some property to date, and that Chesapeake is also in the play for acreage in the area. Please let me know if you get any updates; I would think that the $7,500 is a good rate at present, but, in the next few weeks we may see it rise depending on the competition.
Shelby

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Permalink Reply by lanadan Ds3 on June 16, 2008 at 15:03

Here is the link to look at the imformation about the horizontal well that has an expired permit in sec. 28.
http://sonris-www.dnr.state.la.us/www_root/sonris_portal_1.htm. I think that this well was going into the cotton valley. I have heard that some companies are having a lot of success drilling horizontally into that strata. There is also a shut in well in section 21. My husband was there in 2005 when they were testing the pressure and it was a good well. We don't know what happened with that. We were told by a geologist at that time that the top part of section 20 and 21 were the "sweet spot"

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Permalink Reply by shelby on June 17, 2008 at 2:25

lanadan,
Thanks for the response on the area; I hope that the "sweet spot" is not exclusive, but, those sections do seem to have good activity. I hope some of the gas companies come out with good test results soon for this section of Desoto.
Shelby

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Permalink Reply by Foxiecajun on June 17, 2008 at 4:09

Sweet spot? Hope they stay out of here until Oct. When I own the mineral rights! Since nothing has went on since 1981 the 10 year will then make them mine! I will have to take drastic measures if they show up before then.

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Permalink Reply by Charles Burwell on July 1, 2008 at 5:55

If you top lease to the company with the greatest lease hold in the area chances are they will wait until you are vested with the minerals before they drill.

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Permalink Reply by VSC DeSoto South on July 7, 2008 at 16:45

Received offer today. South DeSoto Parish. Total of 40 acres, in Sect 31.
$9500 lease per acre with 25% royalty. We will be negotiating. I will be exploring the appropriate clauses for us to bring to the table. Note: Coastal Land Service made the offer on behalf of Encana/Shell. Rep was quick to tell me that the other acreage in the unit was purchased over 1 year ago before the existence of shale gas was announced and they leased for $100. I guess that was supposed to make me happy with $9500. Interesting that this same rep pitched $600 Dec 2007. I figure they will come up more since he said that they already have 560 acres leased in the unit (640) and that our 40 and another 40 are the only ones not committed yet. Does this make our bargaining position stronger since they need ours to complete the unit?
How much do most atty's charge per hour to review lease and run questions by, a per hour rate, if possible?

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Permalink Reply by TOM CAT on July 9, 2008 at 5:13

If you owne 51% of a unit you are in the drivers seat. If I were you I would contact other O&G companies who are in the same play (XTO Energy Inc.); ( Chesapeake Energy); (Devon Energy); (Petrohawk Energy Corporation); ( Plains Exploration & Production Company) these guys have deep pockets. We signed with Encana/Shell with regreats check your lease with them they leave out a lot of owners provisions ie. the first 17 provisions.

good luck

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Permalink Reply by shelby on July 10, 2008 at 8:07

VSC,
What township and range are you in?
Shelby

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Permalink Reply by Ladyoaks on July 10, 2008 at 10:49

For a good lawyer, I would expect to pay $200 an hour minimum. So, if you have to spend 1,000 to get a lease reviewed, that is peanuts considering it could be a 30-40 year agreement.

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Permalink Reply by Rick on July 10, 2008 at 11:23

VSC and Shelby, I am not sure what Sections, Townships and Ranges ya'll are in, but from all the information I have found, especially on the homepage of this site under Helpful Links, Minerals-Lease Sale and Tracts, as of yesterday, July 9, the going rate in Sect. 15, 22, 27, &28 are from $23,757.00 to $27,512.00 per acre, in the discussion on here under Sect. 18 & 19, T15N, R14W, I mentioned that Chesapeake is getting ready to drill just off Stonewall-Preston Rd about 1 mile west of US 171, it will be a directional drill and if it produces like some of their other wells and like Petrohawks first release in Elm Grove, over $20,000.00 an acre will probably be the average.

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Permalink Reply by Joan Williams on July 10, 2008 at 12:05

Hi
I cannot find Helpful Hints on this site. Does it say anything about Section 17, what leases are going for ? I have not heard anyone getting over 10,000 an acre except in Caddo parish.

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