Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on February 23, 2016 at 12:28

Thanks, Keith.  I'll be interested to see the Jan. and Feb. 2016 average price.

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Permalink Reply by Krkyoldhag on February 24, 2016 at 5:04

I wonder if Samson even still holds lease on my unit.  I did not see it listed in the ones they are selling off.

It was a lease held by production and has not produced in a year now.

Know an owner who is selling 12 Cheasepeak wells cheap this week..She nuts.

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Permalink Reply by Skip Peel - Mineral Consultant on February 24, 2016 at 5:24

Depending on the price, not necessarily nuts.  The most savvy mineral owners I know sold some or all of their assets in late 2014 or 2015.  For those now getting new multiple wells in addition to their existing well(s) the prospect of 80% depletion of the reserves in those wells at net after tax revenue of about $0.60/mcf is good reason to explore a sale.  There are few active buyers currently but those who can find a good fit for what the have to buy are paying surprisingly good prices.  And there are opportunities to take those sale proceeds and place them in better, safer long term investments.  Some mineral owners will basically see all their Haynesville reserves depleted over the next 4 to 5 years at very depressed prices and high royalty deductions. 

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Permalink Reply by Nicholas B. Couch on February 24, 2016 at 5:52

I missed the survey, but I've been tracking wellhead prices for wells in which I have an interest since 2011. These are in three sections in DeSoto; some are Haynesville wells, and some are older, shallower wells.

The price varies considerably by well operator. Please see the uploaded spreadsheet.

Attachments:

• Wellhead-Prices-by-Operator-and-Month.xlsx, 19 KB

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