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Permalink Reply by Skip Peel - Mineral Consultant on May 29, 2011 at 5:10

$50/acre is a small bonus amount and 10 year lease term is ridiculous.

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Permalink Reply by Skip Peel - Mineral Consultant on May 29, 2011 at 6:43

Mudbugs, there has not been a well permitted in E. Carroll since Sept. '06.  There is no current drilling in this area.  I can not speak to adjacent portions of MS.  The bonus and length of lease term would seem to indicate a speculator behind the offer as opposed to an operator with near term development interest.

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Permalink Reply by Mudbugs20 on May 29, 2011 at 7:02

Thank you Skip. I am always curious about any drilling in NE La. I have been watching the Mainland Resources thread for a while, as a crow flies, its very close to where i grew up.

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Permalink Reply by Skip Peel - Mineral Consultant on May 29, 2011 at 7:27

You're welcome, Mudbugs.  It's possible that the E. Carroll offer is associated with the leasing in north central LA. that appears to be related to the Lower Smackover/Brown Dense.  The Smackover stateline trend seems to extend from E. TX. into MS.

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Permalink Reply by Big Little Oil on May 31, 2011 at 2:19

 There is a dummy corp called Lunar Resources in East carroll and one call Solar Resources leasing in Issaquenna County MS, for deep oil. The bonus offers are so small, length of contracts so long, and the royalties offered (1/8th) indicate its just landmen speculating that theyll be able to resell at  higher rates a couple of years from now. Doesnt look like very serious activity.

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