Just wondering if anyone on here could give me some contact info for someone with GeoSouthern/GEP Haynesville that would be leasing in the area? Any known brokers leasing?

Have some "neighboring" owners that have been approached by them to lease.

Thanks

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Hi Jay

Yeah I'm aware they are in the Woodlands, but wanted to know if anyone might know of the broker or landmen they are using in the area to get leases.

Thanks

Oh OK. If you have inhouse contacts, that will work.

Would you mind emailing to me @ landbill008@gmail.com ?

Thanks again

There are two land companies currently recording leases in DeSoto Parish that may be working for GEPH but as there are no assignments and no current posts by GHS members regarding lease offers it's not possible to know for sure.  Pride O&G and Eureka Energy.  It's a little too early to tell how much needs to be leased and where to accommodate a drilling program that has no drilling permits or unit applications in the public record.  What GEPH has in mind should become more identifiable in the next few months.  It is better not to pursue a lease by contacting a company as it's a sure fire way to get a low offer.  If a company wants to lease your land they will find you.  That puts you in a better bargaining position.  And if there are no plans for near term development in your area there is no reason to offer you a lease at any terms.

I got an offer from GeoSouthern yesterday in writing.  They offred $700 an acre and a 20% royality.  I have 160 acres in that tract.  I called my lawyer today as I don't like that offer.  He hasn't called me back yet. They set a deadling for Jan 18 for signing or they could withdrawn their offer.  The natural gas well on my section hasn't produced in 18 months so I guess that is why they need another mineral lease.

That's an interesting offer under the circumstance you describe. If your lawyer is an O&G attorney, then contacting him/her was a good decision.  The deadline part doesn't fit very well with such a low offer for 160 acres.

Just to be clear, the offer came from a landman in the employ of GEPH?  As opposed to a land company representing GEPH.

The cover letter had GEPH on top left side and GeoSouthern on top right side.  A man named Simon Hays called me on Monday and said he was a landman.  Thats about all I know.

The level of leasing required by GEPH to facilitate their drilling program is probably low and can be handled by the company's land department.  I expect they will look to drill Cross Unit Laterals (wells designated as HC) to maintain production in their existing units.  Your unit although not in production and with expired leases may be required for one of those multi-unit long laterals.  The first question I would have is, why the January 18 deadline?  Anyone who uses that approach should be willing to explain why it is needed.  However that can lead to giving you a negotiating advantage.  What was the royalty in your prior lease?

Skip, in Desoto Parish EnCana's leased sections are stacked one section on top of next section which is impressive when you think that in 2007-2009 leasing, I doubt CULs were even an idea. It will be easy to GEPH to drill CULs off of EnCana's leasing. Just look at Holly Field--EnCana was the operator in so many sections with each section on top of other. At one time EnCana had almost all of Senator Davis' land leased down Red Bluff Rd. where Holly and Caspiana come together but I think some of those leases were released.  It will be interesting to see how many wells GEPH drills this year with gas prices so low

From the beginning of the land rush operators placed a premium on having contiguous section development rights.  At that time it was simply about maximizing the efficiency of all infrastructure:  access roads, well pads, pipeline rights-of-way, etc.  I mentioned on several occasions (almost 8 years ago now) the concept of "stranded units".  Petrohawk had a bunch of individual units (single sections) that were not adjacent to other HK units.  That meant more infrastructure cost to drill and produce those unit wells.  Yes, having contiguous units, especially oriented north/south, allows for more long lateral HC wells.  I've looked at all of the GEPH alternate unit well applications and will post a discussion when they bring in their first rig(s).

I read where GEP is going to drill 5 alternates in section 7 of 14/14 Desoto. I think that will be their first venture into their newly acquired EnCana acreage. That area had some of the top wells in initial drilling. Will be interesting to see how new wells do

Can you share where you read this? 

Reason I ask is because I do not see any permits for such activity.

Thanks

That's because they are not "well permits" but are instead alternate unit well applications.  When an operator wishes to drill additional wells in an existing unit they must get spacing approval from the state.  Once the unit order for those wells is approved then the operator can proceed to get a permit to drill for each well. The alternate well order is good indefinitely and there is no requirement that an operator follow up immediately with a permit to drill application.  The order simply gets that one step out of the way.

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