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Permalink Reply by lee on June 20, 2018 at 5:03

You might want to contact them new well just completed in April doing 10 million a day

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Permalink Reply by William W. Waring III on June 20, 2018 at 6:26

Not in Section 4, T15N - R15W - what well are you referencing, specifically? 

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Permalink Reply by RONNY on June 20, 2018 at 6:40

 

T15N R15W section 4 completed 3/22/2018

250202

HA RA SUK;MUSLOW OG 8

001-ALT

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Permalink Reply by William W. Waring III on June 20, 2018 at 7:15

The Muslow OG 8 001-Alt does not produce from Section 4. While the well is surfaced in Section 4, it only produces from Section 8, thus Les would not have much interest in this well unless he has a mineral interest in Section 8, in addition to his interest in Section 4. 

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Permalink Reply by Les on June 20, 2018 at 9:34

From what the landman told me, the well has not been drilled. It was to be a horizontal. Anyone know what signing bonuses go for these days. It has been years since I negotiated my last mineral lease.

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Permalink Reply by Skip Peel - Mineral Consultant on June 22, 2018 at 5:57

$1000/acre is in the ballpark for current Haynesville leases.  If you had substantially more than 10 acres you might get $1200 to $1500/acre.  Hardly worth negotiating over when the royalty is right and all you need to do is get your Exhibit A attachment in order to cover the other lease terms.

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Permalink Reply by Les on June 23, 2018 at 4:16

Thanks for your input Skip.  No, I will not quibble over a few $ in signing bonus. As frequently discussed on this forum, the royalty percentage is far more important. I am going to try to negotiate a "no cost" lease.  With my current royalties so low, the transport and gathering costs consume a greater percentage of the meager checks. I know I used an example lease with such a provision off of this site years ago but I can't seem to find it now. If someone could direct me to a template with such language I would appreciate it.

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Permalink Reply by Skip Peel - Mineral Consultant on June 23, 2018 at 6:39

One of the advantages of using an experienced O&G attorney is in the negotiation of a no cost royalty clause.  When you do it, it's an either or proposition.  You get it or you don't.  When my attorneys do it and the lessee will not grant a no cost, they are often able to either limit the amount of post production deductions or prohibit some and allow others.  G&T (gathering & treating) costs vary widely from operator to operator and field to field.  That type of negotiation is beyond the ability of land/mineral owners.

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Permalink Reply by Caddo Rat on June 25, 2018 at 8:22

Where in Caddo Parish is this located?

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