Has anyone been contacted lately about leasing in Sabine Parish, especially any in 7N R11W? If so, how much are they offering per acre and how much royalty?
For how many acres?
I'll comment further once I know how many acres you own. Until then, know this. There are only two existing Haynesville Shale wells in 8N - 11W. They were drilled a long time ago, early in the play. Those two wells are in close proximity to your section however which is good. Although there are no new well permits in your township, GEPH has a spacing order from the state for 9 HC (Cross Unit Lateral) wells in Sections 23, 26 & 35 of 9N - 12W. As the crow flies this is about 2 miles NW of Section 8. This would tend to indicate that GEPH has interest in further development in your general area.
Your total acreage has importance to your negotiating position. Your 35 acres is important but not indispensable to drilling a unit covering your section. I'm not going to tell you what you should ask for but I will give you my opinion of this lease offer. Lease offers go out based on future drilling plans. Those plans may call for your section to drilled 6 months from now our 16 months from now, only GEPH knows. Since you are that far out on the development schedule, there is no compelling reason for GEPH to make you their best offer. I consider these terms an opening offer. Some less informed mineral owners may take it, they always do.
As your section moves up on the drilling schedule GEPH will want to form a Haynesville Shale unit and then permit one or more wells. As that time nears, the offers should get somewhat better. Bonus offers aren't what they used to be but generally run $500 to $1500 per acres for tracts in your size range. Please know that the bonus is the least important lease term but one that landmen emphasize for the obvious reason that it is guaranteed real money now and not an inconsequential sum for many folks. The real revenue for mineral lessors (those who are leased) is in long term production and a good royalty fraction. One fifth is low. One quarter is the most anyone usually gets even if they have ten times your acreage. I think a nine fortieth or 22.5% royalty is possible for your situation. If you can get that and the standard lease clauses that are protective and beneficial, you've done your job. You might also ask for a no cost royalty clause but that may be a stretch in your position. If you had an experienced O&G attorney, especially one known to GEPH, the odds would be better but not assured. I do think everyone should get a offer in writing. Then it is a good idea to have it reviewed by an O&G attorney. That usually is not expensive in relationship to your bonus money and may pay dividends in the long run. Good luck.
Can you provide any information on possible leasing now or in future in western 1/2 of T7N R11W? It appears from the posts that the Haynesville is deeper but that the mid Bossier is also prospective? Thank you in advance
I haven't heard anything lately regarding leasing. Operators in the far south end of the LA fairway are inching closer to 7N but not there yet. It may take a while to see anything in the public record that indicates and intent to develop that far south. There is a lot of undrilled rock between you and the northern half of 8N.
Thank You, does this area look promising for the future or do we just have to wait and hope that good wells are made as the drilling progresses to the south to determine that?
Hard to tell as there is very little well control. Good wells to your immediate north would be a good start on moving drilling further south.