I have a friend who has been made an offer to lease in the Jamestown field to drill the cotton valley for $250/acre and a 1/5 royalties. The lease covers from surface to 100' below the base of CV. The bonus money seems to be a little low to me even considering the shape of the oil & gas market at present. Also, there are a couple of old CV wells in the immediate area that were in production up until sometime in the 70's. The lease is being negotiated through a broker, he cannot disclose the name of the operator as per operators request (so he says) Any advise and or opinions regarding the lease terms and or price per acre will be greatly appreciated.
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There are no current or recent unit applications or well permits for the Jamestown Field. And there are no producing CV wells listed for the field; the producing wells are Hosston. Since you mention CV wells in the immediate area, they may be near to but just outside of the Jamestown Field boundary. If you can supply section-township-range for the area of the offer that might help. The field lies in both Webster and Bienville parishes.
The database is down for maintenance. I'll check it later.
Although there are no existing CV wells in this vicinity to provide well control for that interval there is one HA well (QEP Kennedy 6-15-8) that has a log on file that might be of value in evaluating the prospective nature of the CV group in this area. Since there are no unit applications or well permits, and I haven't heard any other reports of leasing activity, the only other suggestion I have would be to look for leases recently recorded in the public records of Bienville Parish. If you or your friend are willing to make a trip to the courthouse, I'll tell you how to conduct a search for recent leases filed in the public record.
In the Clerk of Court's office there will be a "Day Book". I haven't been to the Bienville Clerk's office in some time and the actual book may have been replaced by a computer listing of instruments recorded by date. You'll be looking for any O,G&M lease or memorandum of lease filed of record. An actual lease will provide the name of the lessor (land/mineral owner) and the lessee (the land company working for the "client" or, perhaps, the name of the client), the lands leased (legal description including section-township-range), the royalty fraction, the term of the lease and all the applicable lease clauses. A memorandum will include the lands leased, the legal description and the term of the lease but not the royalty or any of the actual lease language. Keep in mind that leases are recorded in batches, not individually as the are taken. For that reason you may have to look back in time a number of days to find any. Once you have found the name of the lessee you can search by that name and see all the leases taken by that company. If this lease effort is newly underway there may not be any leases or memorandums of lease recorded yet. The land company or their client may choose to delay until they have a greater number of leases executed or they have completed leasing all the lands they are targeting. They can not wait indefinitely however because Louisiana is a "race" state. That means if two companies lease the same lands, the first one to record the lease in the public record gets the development rights. Although the Clerk of Court staff can not perform the search for you, they can help you by answering questions or showing you how to use their computer system.
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AboutAs exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More |
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