Good Morning Everyone, Well I have confirmed through several sources  that  the leasing in the Felicanas and Northern East Baton Rouge parishes is ConocoPhilips. The lease prices have gone from $250 an acre to $800 to $1100 per acre. So they have spent $80,000,000 to $100,000,000 in these three parishes in the past month. This is just the beginning. There is a lot of acreage still unleased out there.. 

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Thank you Joe for this information.  Any insight as to the term, cost and royalties in these leases?

Joe, do you think they are interested just in the Austin Chalk, or does this leasing also involve other formations such as the TMS? Any idea as to how far north in WF and EF they want to sign folks? Would they go all the way up to Clinton or stay south, down close to EBR Parish?

Good Morning Charles and Jessie,  My understanding is the royalty is 1/5. Their primary focus is the AC. If anything else appears to be productive then I'm sure they'll go after it. Some of the property in the lease package is just South of Jackson all the way down to the 61 overpass at Jetson.

My instinct is that the first leasing was an attempt by EOG wanting to extend their lease acreage to the East. ConocoPhilips upped the lease amount and cut EOG off at the pass.My fear at this point is this is all of the acreage that will be leased in the near future in this area until the area is proven. C/P is.going to have to start drilling immediately to protect their leases. Even with 2,000 acre units that is a lot of drilling in the  next 5 years.

Joe, on what do you base your fear that leasing east of the Mississippi is about to cease?  With two majors in the field, I hope the leasing continues.

Its just instinct. I think most prudent operators will want to see more results form operations before spending big bucks on leasing. I hope Jay and Skip will give their opinions. I had been talking to a in Houston about getting involved in the area at the 250/acre rate. This jump in lease prices has blown them out of the area. They are sitting on the sidelines waiting to see what the drilling shows.

Joe, the AC is not on my radar currently, I've got all I can do to keep up with Haynesville activity.  Unless I get a client that wants to pay me for AC research,  I'll just follow along with this and other threads on AC activity and help out where I can with data from SONRIS.

Thanks Skip. I understand. Got to go with what pays the bills. Thanks for the response.

Thanks Joe, your instinct is informed by experience!  

Can anyone shed light into pros and cons of a landowner jumping into a 'pooling' agreement which allows a third party to negotiate your lease along with other landowners for purposes of leverage?  Also, would love to find out more specifics as to how these arrangements usually work before we even contact someone as we are considering looking into this for our acreage. (ie, can we use our own lease form, would we be committed to the third party for a set period of time, do they usually take an override or just % of bonus, is there a penalty for 'jumping ship'...

thanks

Jay, how do you define a "tract of land too small to be desirable?"  Just a rough estimate would be appreciated.  Thank you. 

Agree.  Especially regarding 640 acre drilling units.  Then again the math would be a little different for larger units.


Sunday Feb 18th

Below is a summary that I sent to my four other family members. 
Jan. 4th       Acadian Land Services  of Lafayette, La    Scott  LeJeune   337-237-0060
Offered 3 Year lease   $250/acre, 4th Yr  $450/acre,   Royalties 20%   Also sent a contract.   Have not responded to his offer.

Jan 11th     Cypress Energy  -  Todd Landry  343-1311  called asking if we were interested in leasing our 200 acres.   He did not at this time make an offer.
Jan 12 th   Amelia Resources -  Brett Bajon ( 281-798-6741 ) called.  Kirk Barrell is president. ( I have seen several articles written by him.)  Stated their interest in the Austin Chalk and Tuscaloosa Marine Shale.  He e-mailed the company's presentation and a sample lease agreement.
The best that I can understand is we would sign 6 month agreement with a potential $600 - $1,000 / acre and 20% royalties, but they would not be committed to that. ( I do not have a good understanding of it )
They were in the process of gathering acreage ( 42,000 acres at the time)  They were going to NAP Expo in Houston the week of Feb 5th to offer the 42,000 for sale.  He explained they had done the same in late 2017 with 82,000 acres that sold for 85 million which gave each land owner an average of $1,050 / acre  (not sure of % )

 At that time I told him there was approximately another 300 acres near our 200.  They are going to work to get another lot of acreage when they complete the Houston Expo.   I am hoping we can learn shortly after that, how much it all sold for.

​A friend ​
has 400 acres at McManus, La   Atty Mr. Rob Ligon of St Francisville is negotiating with EOG or ConcoPhillips    Currently at $900/acre + 20 %.   
​He​
is not in a hurry and hoping for 22%.   He is aware that a little more North of him, some have received $1,300 + 25%.   Mr Ligon is charging him a flat $1,500  and no royalty fee.  He also said that Petro Quest may show some interest.

​Jan 21st   ​
I did call Mr. Ligon the next day.  He indicated that leasing that he had done last year was mostly with Cinco Oil & Gas of Dallas.  He is hoping to continue with them because of the previous agreements they had been able to work out.  However, the properties he is currently trying to lease has been with Conco Phillips.  He did confirm that he does work with a flat rate and NO commission on the royalties.  He is to get back to me in a couple of weeks after making sure what the leasing interest is, in our area of the parish.
Jan 29th   Mr 
​Harold​
( about 
​5​
miles North of us )
​ ​
call me.  Had a call from Todd Burkheiser with Cinco representing Conco Phillips interested in the Austin Chalk.  Offering $600/acre + 22.5% , OR ,  $900/acre + 20%.  Mr 
​Harold​
had originally received a call from Cinco back in Dec 2017.
The next day I called Mr Burkheiser.  He said that they had not been given the OK yet to work our area but probably in a couple of week.  He stated that he was waiting for them to put our area in the budget.

Jan 30th  Jeff Corbin with Cypress ( 936-3484 ) called representing Hunter Explorations
​.  He just wanted to know if we would consider leasing our 200 acres.  Did not make an offer.​


In the "Louisiana On Shore Handbook" by Donald A. Goddard  an Associate Professor at Louisiana State University, Center For Energy Studies along with many other titles.  I wrote him and ask if he would give an opinion of our chances at our location.            
​Below,  his​ reply was very encouraging. 

 

"One more thing; above that zone is the Austin Chalk and in Rapides Parish a company was successful just a few months ago drilling and producing this zone. It is also found in the subsurface of East Baton Rouge Parish. In other words you are "sitting pretty" where you are. I know both of these producing formations very well."

 "Just remember you own the leases and they need you more than you need them and therefore, you have the upper hand. Remember oil companies have tons of money; so it's important you negotiate the best deal for you and your family. The best deal is a win-win but for most oil companies a win-win is when they screw you. I know, because I've been there."

​      ​
I did join NARO   National Association of Royalty Owners.  The main reason to do so was to be able to see recent leasing and amounts for East Baton Rouge Parish.  I called on Monday only to learn they do a two month period.  Last one was Nov & Dec.  Low of $100 and high of $500.  Now I have to wait until the end of Feb.

​      They ( NARO ) did provide me with a web site        http://gohaynesvilleshale.com/forum     This is letting me see what others are writing about the Austin Chalk and I can ask questions more specific to our are area in East Baton Rouge Parish.  Three or four of those that post seem to know a great deal.  It is a lot more than I can keep up with but I do manage to " glean " a few things.

I found a site Mineral Hub.  I have not ask any questions on the forum yet.  There are plenty of articles available that can answer some of my questions. 

I do have 8 land owners ( about  1,000 acres ) in our area that are staying in contact with each other.  I do not think anyone in our family is in a hurry so I just need to learn how & when to negotiate and respond to offers.

I know a lady that works for the state.  She sent a site for me to look at. 

sonris.com    ​
It shows​ well permits, production and much other.  Don't know how much I will glean from it.  I would like to learn when & where new wells or located.
​  It is difficult for me to learn how to maneuver through the site.​

​Feb 9th     Received a call from Blake Levasseur (888-858-3958 )​ for Grand River Oil & Gas.  He was interested to know if we would consider leasing our minerals.  He did not make a offer at this time.

Feb 10th   Received a 2nd  call from Jeff Corbin ( 936-3484 ) with Cypress for Hunter Explorations.  His offer is for 3 years  $600 / acre + 20% royalty and a 3 year extension for $600 /acre.   I think he is having success in the area and is just staying on top of his game by staying in touch.  I told him that I am waiting for Amelia to announce their latest sales numbers.   He knows that I am not going to have an answer for him this week and he should be suspicious  that at some point we will be making a counter offer.

 
​Feb 10th     ​
This afternoon I learned that
​Jeff Corbin ​
had been talking to 
​our five​
 neighbors
​ (250 acres)​
.  They all accepted his offer.     We are now down to four land owners that are staying in touch with each other.

​Feb. 12th     A friend Jeff has 150 acres about 7 miles north of me and a mile from the East Feliciana line.  Cypress offered $600 + 20%.   He has not accepted.​


Feb. 12th   Mr Jim  ( friend of Harold  ) told us that a family on Tucker Rd had signed with Mr C D Romero with Cinco for $600 + 20 %.. ( do not know no. of acres )

Feb 16th     Received a call from Scott at Acadian Land Services.  (  he is an independent landman hired my the drilling company )   He was the first to call us about 5 weeks ago, Jan 5th,  offering $250 + 20%  and  3 Yr ext of  $450 / ac.    You can see his new offer of $750/ac + 20%
​,​
 
​1 Yr ​
Ext  at $1,000 / ac  This is the kind of thing that we have hopped would happen,  meaning he knows what others are offering,  like the other neighbors accepted the $600 + 20%.   He would not  say who the drilling company would be, but they are from New Orleans.

Feb  17th 
​   ​
Harold  ( ref: Jan 29th above )  He tried calling Todd Burkheiser with Cinco.  He learned that Todd was unhappy with Conco Phillips was not following through with the funds for him to complete some the lease agreements he had lined up.  Todd did tell 
​Harold​
that he was most likely to team up with Amelia Resources. 
          I had talked to Todd about 3 weeks ago.  He told me at that time to call back in about 3 weeks hoping that Conco would have completed adding funds to their budget for our area.    I will call him on Feb 19th to see what is going on.

John
Feb 18th

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