Replies to This Discussion

Permalink Reply by Dick Shuford on August 29, 2008 at 12:53

Yes, my 2 plats show different proposed formations but I think it is just a situation. I do note that all wells shallower than 8,000 are omitted so I am assuming that since the section description are the same, it won't matter. For years I have felt they (someone) would drill an offset the Johnson No.1. I have felt that Shell and others have correlated off this well to make their basis for drilling. Ok, maybe I am wrong but it is one of few wells in this area that has the depth to see logs on. The Moffett No.1 was somewhat shallower. I was overseas when all of this was drilled. When I returned I went to the Phillips Folks and discussed the Johnson Well. They told me that six million dollars and Alice's Wagonwheel was the problem. I have heard a lot of stories. Who knows?

Permalink Reply by illinigirlnow on September 5, 2008 at 15:55

Dick - may I say that I appreciated your comments for that is what I would like to see. Question - Though I had a lease commitment going with XTO, now I am getting information that they want to revisit. Have you heard anything?

Permalink Reply by Dick Shuford on September 7, 2008 at 0:44

illnigirlnow,

No I haven't heard anything. I was one of those guys that leased for the $100.00 some three years ago. I would like to say that if one has land to lease and keeps holding out in hopes of getting another $ ???? more money, they may be unhappy. I received an Excel file the other day that better calculated the projected revenue of whatever acreage. When one plugs in a production of say twenty years, it is clear that loosing say $ 12,000.00 acre in lease money is a big loss. It seems that many are worrying that someone else will get more. Maybe so, but a bird in the hand as the old saying goes. Of course who am I to advise anyone? Oh well.

Permalink Reply by Brent on September 24, 2008 at 15:05

Mr. Shuford,

I appreciate your insight. I also leased some three years ago for $100.00 an acre. I sure wish I would have know then what I know now. $12,000 an acre could have been life changing for my family and I. I just consider myself lucky to have some land in the play.

Permalink Reply by Dick Shuford on September 30, 2008 at 0:49

Yes, that kind of lease money would be nice but a good well would be also. One thing that has come up recently is the way Shell is drilling these wells. To the best of my knowledge the three wells drilled so far have been vertical wells. There has been some concern by some folks as to why they are NOT doing horizontal wells like the ones in Desoto and Bossier Parish. There seems to be some thinking that the are trying to cover as much territory as possible which locks more land. A vertical well is faster to drill but in the long haul will not give up as much gas as a horizontal well. Someone said that Shell had made the statement that they were going horizontal. I think (although I'm no authority on this) that with the three wells in place, they should have defined the shale section enough to start doing horizontal wells. Please be apprised that The Louisiana Dept of Natural Resources is in Baton Rouge to govern and protect you and your interest. They (DNR) have a hearing in which the company has to attend to prove the need for certain application to form units, etc. If you feel that the future wells should be drilled horizontally, you need to call or write The DNR and voice you desire. I am not saying that you'd get your way, but if you don't speak up now your grandchilden will pay later.

Although what I am going to say here is probably history, had many landowners acted some years earlier many leased acres would be back in the landowners hands today. There are a lot of little shallow wells in the area holding leases. I suspect that had the landowner of some of these obsolete and non productive wells, asked DNR to force the plugging of them, he'd have his lease available today. I know of people that did this some years ago and they now AGAIN control their royalties. I have people call me complaining about this from time to time. All I am trying to say is make sure you are not letting something get away from you. I know of one man that has $400,000.00 more money today because someone else informed of his lease. This shale thing is big and it will be here for years. Be informed.

Permalink Reply by Dick Shuford on November 22, 2008 at 1:52

Well it looks like things have cooled off in the area. I haven't been paying much attention to what is going on lately. I hope that I am wrong but I feel the leasing as we saw it is over. Many of my friends did well and I am happy for them. But some weren't so lucky and that saddens me. I have this theory that we will not see this kind of money being paid again.

I feel that the companies have enough acreage leased to allow them to drill a lot of wells. I hope that I am wrong but I feel that when a landowner see his neighbor in an adjoining section getting royalty money off a producing well, he'll think, what's better, holding off for big lease money or getting a well? I know what I'd do but folks have their ideas.

Permalink Reply by Buzz Cooper on November 22, 2008 at 2:37

Yea it's amazing to me the "greed" out there. I agree that we all should get our piece of the pie but I know a guy sitting on 100 acres that he leased 2 years ago for nothing an acre. I set him up with a guy that paid me 400,000 for half my leased minerals. Now this guy is 50,drives a piece of crap truck and has no life but he turned down 500,000 for half his minerals! He would still have 50 acres worth of royalties if he sold half. No kids, no other family, who's gonna end up with royalties if he dies in ten years? The state! Have some fun,buy a harley, a new truck, and get a life!!

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