Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on August 13, 2009 at 16:14

Thanks, TB. I hope the state bid auctions become of greater interest in the near future. They sure were fun in the summer of 2008.

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Permalink Reply by sesport on August 13, 2009 at 17:54

Wait a minute, has anyone done the math on that total for the state (not just the parishes)? :-P

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Permalink Reply by The_Baron on August 17, 2009 at 9:02

What do you mean? The total above is the state total, but most was in NW LA.

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Permalink Reply by sesport on August 17, 2009 at 13:03

Sorry, Baron, I'll clarify. I was thinking what the AVERAGE was for the total acreage ... $2,785/acre average. Without knowing how much acreage was leased in Caddo, DeSoto & Red River parishes, I won't hazard a guess at that average. I just thought that kind of average bonus for the total package was kind of low.

thanks :0)

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Permalink Reply by The_Baron on August 18, 2009 at 3:27

From the mineral Board:

The Board sold leases in 12 parishes – Allen, Caddo, Cameron, East Baton Rouge, DeSoto, Lafourche, Madison, Ouachita, Plaquemines, Red River, St. Charles and Terrebonne. Of the 31 leases sold, 23 were in north Louisiana and the remaining eight were located in the southern part of the state.

Twenty of the 23 north Louisiana leases were sold in Caddo, DeSoto and Red River parishes, in the area of the Haynesville Shale natural gas formation. Of that 20, 16 were sold in Caddo Parish. Lease sale prices remain strong in that area, with the 20 Haynesville Shale area leases averaging more than $6,500 an acre.

The lease prices the Board has seen in the Haynesville Shale area in the first two months of this financial year – averaging nearly $4,800 an acre in July and more than $6,500 an acre in August – are strong compared to previous years, though not what they were during the heat of the 2008 rush. For the parishes that have been the primary interest area for the Haynesville Shale, lease price sales averaged about $532 an acre in 2007 and about $252 an acre in 2006.

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Permalink Reply by sesport on August 18, 2009 at 14:22

Thanks, Baron. I found that. In one month, those HS lease prices jumped 35%. Wonder what the next several months will bring as gas in storage should (hopefully) go down toward the end of the year.

best - :0)

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Permalink Reply by JHH on August 14, 2009 at 1:31

What are the terms... how many years... the %..? jhh

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Permalink Reply by The_Baron on August 17, 2009 at 9:03

State leases are three year terms.

Royalties vary by bid, but in the HA area they are almost always 1/4 royalty now.

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Permalink Reply by Keeth McKneely on August 18, 2009 at 7:40

This sounds really good, we have a lease coming up in Bossier Parish in Nov. I am really surprised they are still paying out this much bonus money with the price of gas so low, but who's going to complain$$
Dig, Dig, Dig,

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