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Permalink Reply by Bardweiser on July 28, 2008 at 6:02

It seems Charleston (working for EnCana, I think) has bought up (and continues to buy) mineral leases in a section that stretches from the Ouachita River eastward to the Franklin parish line and from Columbia northward to at least as far as Corey/Riverton. Most of these have been for royalties of 1/6th with a few at 1/5th. The first leases filed (at least from what I could tell) were Fall of 2007.

There is a large plot of land cleared out on Hwy 133 (locally called "the Hebert-Dump Road") where someone is supposedly going to put up a rig.

Chesapeake, from what I understand, has been buying up around the Holum area (not sure on $ or royalty amounts though).

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Permalink Reply by Bardweiser on August 6, 2008 at 7:03

Found out about Chesapeake's offers in Holum. Can you say $75/acre and 1/6th? But wait, it gets better/worse! The leases were for ALL levels (surface-to-China). They didn't BS anyone, just showed up and started tossing out the offers. The good thing is that not many folks took the offer, the bad is that ANY took the offer.

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Permalink Reply by Ed Hill on August 6, 2008 at 7:28

Has Charleston Energy stated if they are buying leases for exploration of the Haynesville Shale in Caldwell Parish?

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Permalink Reply by Bardweiser on August 6, 2008 at 7:57

Yup, that's what the leases are for. The last two O&G lease books in the Clerk's office could be easily renamed "Charleston Energy O&G leases" as the vast majority are with Charleston (there are a few shallow leases for the NW corner of the parish with Carruthers).

The Charleston leases have ranged from $100-$200 per acre and from 1/6th to 1/5th royalties.

All it will take is one well to either make or break all of this. If a well hits, add another zero or two to those lease bonuses. If a well fails, everyone could pack up and move westward.

Speaking of drilling, a little birdie told me yesterday that someone is drilling a deep well in Richland parish, near the Caldwell line. Can't remember the name of the driller (some guy from Texas, distinct name but it just escapes me at the moment).

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Permalink Reply by Oil Neophyte on August 6, 2008 at 8:42

Bardweiser:

My family owns acreage in Jackson Parish but right on the parish line between Jackson and Caldwell (100 acres off of Hwy 4). My brother-in-law is a geologist in Houston who works offshore projects for Shell.

I asked him about the Haynesville Shale in regards to our family acreage. He said that he checked with some geologist friends who work for Petro Hawk. They told him that based upon the data that they had reviewed (old seismic, etc.), they felt that there was a strong possibility that the Haynesville Shale did not extend to where our property is located and even if it did, it would be at a depth of around 19,000 feet or so. Not a condusive depth for the drilling of a well. My brother-in-law said that the Haynesville Shale tapers off as it extends eastward from Caddo Parish, etc. Bummer for us because I was hoping that we would be able to cash in on some of the craziness happening in the NW parishes.

We has leased this acreage about 5 years ago to Devon Energy but they drilled a dry hole about 2 miles away from our property and it killed any further drilling. I believe that they were looking for Hosston/Cotton Valley sands.

I'm not trying to dampen your parade, but it is is possible that this Charleston Energy (are they a drilling company?) could be looking for something other than Haynesville Shale. I know that if someone approaches us about leasing, we will want a fair deal but will not be so naive as to hold out for the crazy money being paid in Caddo, etc. As my brother-in-law told me, you make way more money off of the royalty than you off of the leasing. I'd be willing to lease for less money in order to get a well drilled because no company is going to come in and pay crazy money right off of the bat for something not proven to be in the area. If I lease for $200/ac and 1/5th and my neighbor leases for $2,000/ac and 1/6th, my 1/5th royalty will bring in more money down the road than his 1/6th will.

Just my 2 cents. I wish you the best of luck in the leasing of your property.

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Permalink Reply by Bardweiser on August 6, 2008 at 9:19

I believe Charleston is the land company working for EnCana.

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