Amelia Resources Cashes In On Louisiana Austin Chalk - GoHaynesvilleShale.com2024-03-28T15:46:19Zhttps://gohaynesvilleshale.com/forum/topics/amelia-resources-cashes-in-on-louisiana-austin-chalk?commentId=2117179%3AComment%3A3661118&feed=yes&xn_auth=noI understand, Joe. There is…tag:gohaynesvilleshale.com,2018-01-08:2117179:Comment:36610522018-01-08T23:36:10.511ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>I understand, Joe. There is no royalty without a producing well. However if this is an economic play, it may turn out similar to the Haynesville Shale. Many owners of large acreage tracts were leased early for a fifth but once the development began in earnest and all the competitors started looking to expand their position, 25% quickly became the norm regardless of the tract size.</p>
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<p>I understand, Joe. There is no royalty without a producing well. However if this is an economic play, it may turn out similar to the Haynesville Shale. Many owners of large acreage tracts were leased early for a fifth but once the development began in earnest and all the competitors started looking to expand their position, 25% quickly became the norm regardless of the tract size.</p>
<p></p> Skip and Jay, this came out o…tag:gohaynesvilleshale.com,2018-01-08:2117179:Comment:36611542018-01-08T23:16:49.745ZJoe Aldridgehttps://gohaynesvilleshale.com/profile/JoeAldridge
<p>Skip and Jay, this came out of the "blue" so to speak. I've been trying to get someone interested for years. I pitched this to a group in Houston 3 or 4 years ago. Their response was "Do you have 3-d seismic". You don't need 3-d seismic when you have 1500 ft of fractured formation. So that died.</p>
<p>Then recently we had contact with Cinco. Their offer was $250 an acre and 20% for a 5 and 5 lease. Then someone called and offered $250 an acre and 20% and a 5 year lease. I countered with a…</p>
<p>Skip and Jay, this came out of the "blue" so to speak. I've been trying to get someone interested for years. I pitched this to a group in Houston 3 or 4 years ago. Their response was "Do you have 3-d seismic". You don't need 3-d seismic when you have 1500 ft of fractured formation. So that died.</p>
<p>Then recently we had contact with Cinco. Their offer was $250 an acre and 20% for a 5 and 5 lease. Then someone called and offered $250 an acre and 20% and a 5 year lease. I countered with a 3 year lease he immediately countered with 3 and 2. We were supposed to meet and finalize an agreement. Then Kirk puts together his block. That blew the Cinco and I assume EOG out. I tried calling this last landman to see if there was any further interest. I have not received a call back yet. So my point is I tried to get interest in this area for several years with no luck. This is what I had hoped for and with the kind of bonus they are offering I'm going with Kirk. He has a proven ability to put together the geology and acreage that gets results.</p>
<p>Skip, I'm aware there is a difference in the 20% and 25% royalty. The way I see it the HZ wells are considerably more expensive to drill. I'm willing to spot a company 5% to drill and frack/sandpack an AC well.</p> The difference between the ro…tag:gohaynesvilleshale.com,2018-01-08:2117179:Comment:36610442018-01-08T22:14:25.137ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>The difference between the royalties paid over the life of a lease at a quarter royalty vs.a fifth.</p>
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<p>The difference between the royalties paid over the life of a lease at a quarter royalty vs.a fifth.</p>
<p></p> What does the final 25% reduc…tag:gohaynesvilleshale.com,2018-01-08:2117179:Comment:36613142018-01-08T22:05:51.766ZThomas C. McKowen, IVhttps://gohaynesvilleshale.com/profile/ThomasCMcKowenIV603
<p>What does the final 25% reduction in your formula represent?</p>
<p>What does the final 25% reduction in your formula represent?</p> EBR is below the shelf correc…tag:gohaynesvilleshale.com,2018-01-08:2117179:Comment:36611212018-01-08T14:49:03.613ZThomas Maglonehttps://gohaynesvilleshale.com/profile/thomasmaglone
<p>EBR is below the shelf correct.</p>
<p>EBR is below the shelf correct.</p> Using Joe's bonus example abo…tag:gohaynesvilleshale.com,2018-01-08:2117179:Comment:36612352018-01-08T14:42:10.185ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>Using Joe's bonus example above let's use $1,000/acre and a forty acre mineral interest. If $40,000 is a significant amount of money after deducting for federal and state taxes and will accomplish something of worth for you and your family, it might be worth considering. However, if economic wells are drilled, your long term royalty income will be less by a factor of 25% if you were to lease for a fifth but the operating company was willing to pay a quarter. </p>
<p>With horizontal…</p>
<p>Using Joe's bonus example above let's use $1,000/acre and a forty acre mineral interest. If $40,000 is a significant amount of money after deducting for federal and state taxes and will accomplish something of worth for you and your family, it might be worth considering. However, if economic wells are drilled, your long term royalty income will be less by a factor of 25% if you were to lease for a fifth but the operating company was willing to pay a quarter. </p>
<p>With horizontal development and large acreage units, there will be multiple wells drilled over the life of unit production. As a experiment, take the maximum number of wells allowed in a unit and multiply by the number of barrels per well that the operating company claims are recoverable. Plug in a value for a barrel of crude, be conservative. If there is significant natural gas production, add that also. </p>
<p>Keeping in mind the present value of a dollar, spread that production over the estimated life of a well, say 20 years as an example. To calculate your portion of the money generated by those wells, divide your acreage by the acres in the unit and multiply by your royalty fraction. That many place decimal you get is your interest in unit production. Off course you will be charged for costs associated with marketing the oil and gas so make a guesstimate of how much will be taken out for taxes and post production charges. Even for a modest 40 acre mineral tract, the net income for the life of the wells in your unit is a big number for forty acres. Now reduce that number by 25% and you have the amount that you traded for that $40,000 upfront bonus check.</p>
<p></p> 90% of the area he leased is…tag:gohaynesvilleshale.com,2018-01-07:2117179:Comment:36609942018-01-07T11:07:55.350ZJoe Aldridgehttps://gohaynesvilleshale.com/profile/JoeAldridge
<p>90% of the area he leased is above the shelf. Going to be a lot of fracking going on.</p>
<p>90% of the area he leased is above the shelf. Going to be a lot of fracking going on.</p> Jay, the going price was $900…tag:gohaynesvilleshale.com,2018-01-06:2117179:Comment:36609292018-01-06T21:03:07.919ZJoe Aldridgehttps://gohaynesvilleshale.com/profile/JoeAldridge
<p>Jay, the going price was $900 to $1100 an acre. In that "round" he took 7% of the lease bonus with a 3% override. And it is ConocoPhillips. Most of the acreage was in East and West Feliciana with a few thousand in East Baton Rouge.</p>
<p>Jay, the going price was $900 to $1100 an acre. In that "round" he took 7% of the lease bonus with a 3% override. And it is ConocoPhillips. Most of the acreage was in East and West Feliciana with a few thousand in East Baton Rouge.</p> What is COP?tag:gohaynesvilleshale.com,2018-01-06:2117179:Comment:36609172018-01-06T15:38:03.786ZCharles Jenkinshttps://gohaynesvilleshale.com/profile/CharlesJenkins720
<p>What is COP?</p>
<p>What is COP?</p>