New LA AC Player - GoHaynesvilleShale.com2024-03-29T00:52:43Zhttps://gohaynesvilleshale.com/forum/topics/new-la-ac-player?groupUrl=austinchalk&commentId=2117179%3AComment%3A3732021&xg_source=activity&groupId=2117179%3AGroup%3A1676439&feed=yes&xn_auth=noThank you, Thomas. Much appre…tag:gohaynesvilleshale.com,2018-09-19:2117179:Comment:37497082018-09-19T19:04:26.082ZJesse Joynerhttps://gohaynesvilleshale.com/profile/JesseJoyner
<p><span style="font-size: 14pt;">Thank you, Thomas. Much appreciated. The 3% ORRI is a mouthful of a bite for Kirk. Nevertheless, I can see both sides of the coin. Still, landowners might be surprised that there are all sorts of "free royalty" clauses. And they also might be a little shocked by how many deductions can still be gobbled up out of the mailbox money. That said, if the concept proves out and the wells are good, probably many mineral owners will be happy to get what they get, I…</span></p>
<p><span style="font-size: 14pt;">Thank you, Thomas. Much appreciated. The 3% ORRI is a mouthful of a bite for Kirk. Nevertheless, I can see both sides of the coin. Still, landowners might be surprised that there are all sorts of "free royalty" clauses. And they also might be a little shocked by how many deductions can still be gobbled up out of the mailbox money. That said, if the concept proves out and the wells are good, probably many mineral owners will be happy to get what they get, I guess. Some money is better than no money. </span></p>
<p><span style="font-size: 14pt;"> </span></p> It's a speculative industry. …tag:gohaynesvilleshale.com,2018-09-19:2117179:Comment:37492552018-09-19T14:24:42.584ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>It's a speculative industry. And this is very early in a potential play that is <span style="text-decoration: underline;">not</span> an unconventional reservoir. If it was, the dynamics would be much different. Until exploratory wells prove up economic areas, leasing very large areas will be a crap shoot. Those unleased mineral owners who end up in proven economic areas can likely do better than the terms offered by Amelia. Those who end up in non-economic areas will get nothing. So,…</p>
<p>It's a speculative industry. And this is very early in a potential play that is <span style="text-decoration: underline;">not</span> an unconventional reservoir. If it was, the dynamics would be much different. Until exploratory wells prove up economic areas, leasing very large areas will be a crap shoot. Those unleased mineral owners who end up in proven economic areas can likely do better than the terms offered by Amelia. Those who end up in non-economic areas will get nothing. So, plenty of risk to go around for all parties.</p>
<p></p> They give nothing up-front to…tag:gohaynesvilleshale.com,2018-09-19:2117179:Comment:37493372018-09-19T14:08:00.800ZThomas LaSallehttps://gohaynesvilleshale.com/profile/ThomasLaSalle
<p>They give nothing up-front to landowner and get nothing up-front. Under our deal (which expired after 6-months and we elected not to extend) with Amelia, they were to get 8% of bonus and 3% of royalty if they flipped deal, as he was shooting to secure a 20% no cost royalty for landowner/us (which means he was to lock in a 23% no cost lease with operator). The optional bonus payment after 6-mths (or perhaps a year for some agreements) seems to just be a 'bone' they dangle as don't see where…</p>
<p>They give nothing up-front to landowner and get nothing up-front. Under our deal (which expired after 6-months and we elected not to extend) with Amelia, they were to get 8% of bonus and 3% of royalty if they flipped deal, as he was shooting to secure a 20% no cost royalty for landowner/us (which means he was to lock in a 23% no cost lease with operator). The optional bonus payment after 6-mths (or perhaps a year for some agreements) seems to just be a 'bone' they dangle as don't see where Amelia could pay that kind of bonus money out (on the 384,000 acres in W. Fel, they were talking about raising that to $900 - so that would be 345MM out of Amelia's pocket to secure option on all - even at $400 per acre, not the kind of money they would likely pay out) . Their intent is to 'flip' deal within the 'ride' (free) period. We had our own personalized lease we were going to use if they were able to flip the deal. Amelia was very up-front with us and do think they can help drive up bonus payments when they have enough acreage signed up in a 'hot' area that the operator must take. However, does seem operators will avoid this type of 'pressure' at all cost and just wait out this approach when possible. JMHO</p> So what did Kirk get out of t…tag:gohaynesvilleshale.com,2018-09-04:2117179:Comment:37422422018-09-04T00:54:33.173ZJesse Joynerhttps://gohaynesvilleshale.com/profile/JesseJoyner
<p><span style="font-size: 14pt;">So what did Kirk get out of the deal? Would it be something like $200/acre bonus and an ORRI? Or does he negotiate a flat fee from the buyer?</span></p>
<p><span style="font-size: 14pt;">So what did Kirk get out of the deal? Would it be something like $200/acre bonus and an ORRI? Or does he negotiate a flat fee from the buyer?</span></p> Agreed, TD,P. That focus on…tag:gohaynesvilleshale.com,2018-09-03:2117179:Comment:37421462018-09-03T23:06:52.494ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>Agreed, TD,P. That focus on bonus has a basis in past history for this region but is a mistake in the present. Anyone making decisions on what happened previously may be making a mistake in the present.</p>
<p>LBP, it is okay to post your positive opinion of Amelia but it would be more helpful for members to provide the other terms in the leases being offered. What is the royalty fraction? Are you signing the standard lease, or do you have an Exhibit A you can share? What is the lease…</p>
<p>Agreed, TD,P. That focus on bonus has a basis in past history for this region but is a mistake in the present. Anyone making decisions on what happened previously may be making a mistake in the present.</p>
<p>LBP, it is okay to post your positive opinion of Amelia but it would be more helpful for members to provide the other terms in the leases being offered. What is the royalty fraction? Are you signing the standard lease, or do you have an Exhibit A you can share? What is the lease term? The "benefit" of aggregating leases into larger, contiguous lease blocks is largely a benefit for Amelia and the company acquiring the leases from Amelia. Depending on location, not so much for lessors. This is not an attack on Amelia, Kirk or any speculative lease programs. This is a discussion about the nuts and bolts of what could be a very long term agreement with implications that may only be evident in the future. Some of us have been down this road many, many times before.</p> There are things that are muc…tag:gohaynesvilleshale.com,2018-09-03:2117179:Comment:37422302018-09-03T22:56:38.834ZTwo Dogs, Piratehttps://gohaynesvilleshale.com/profile/ThomasRScarbrock
<p>There are things that are much more important in a lease than bonus money but many can't seem to see past that one time payment.</p>
<p>There are things that are much more important in a lease than bonus money but many can't seem to see past that one time payment.</p> I have spoken with Kirk sever…tag:gohaynesvilleshale.com,2018-09-03:2117179:Comment:37422122018-09-03T19:20:08.949ZLBPhttps://gohaynesvilleshale.com/profile/BPonder
<p>I have spoken with Kirk several times recently regarding his offer. He is very up front about the terms, and it is up to every landowner to make an informed decision. My understanding is that the landowners in East Feliciana Parish who were part of his 40k acre sale received a $1300 an acre bonus -- well above what anyone else was paying.</p>
<p>From my perspective, the benefit that Kirk brings the landowner is his ability to create a large acreage block that he can market to a potential…</p>
<p>I have spoken with Kirk several times recently regarding his offer. He is very up front about the terms, and it is up to every landowner to make an informed decision. My understanding is that the landowners in East Feliciana Parish who were part of his 40k acre sale received a $1300 an acre bonus -- well above what anyone else was paying.</p>
<p>From my perspective, the benefit that Kirk brings the landowner is his ability to create a large acreage block that he can market to a potential purchaser; and his successful track record should speak for itself.</p>
<p>All that said, we have a couple tracts of land in St. Helena Parish and have not yet signed up with Kirk and have not yet been approached by anyone else wanting to lease. </p> I guess someone with no exper…tag:gohaynesvilleshale.com,2018-09-03:2117179:Comment:37421292018-09-03T18:07:13.494ZTwo Dogs, Piratehttps://gohaynesvilleshale.com/profile/ThomasRScarbrock
<p>I guess someone with no experience can claim stupidity when questions arise about ethics and honesty come up after the lease has been signed. I wonder about practicing law without a license.</p>
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<p>I guess someone with no experience can claim stupidity when questions arise about ethics and honesty come up after the lease has been signed. I wonder about practicing law without a license.</p>
<p></p> What Kirk does is not illegal…tag:gohaynesvilleshale.com,2018-09-03:2117179:Comment:37423822018-09-03T17:51:45.140ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>What Kirk does is not illegal and as long as his field representatives are honest with mineral owners, not unethical. I do understand your concern, TD,P. I think that many landowners in this area of central LA are not well informed and are vulnerable because of past leasing and development experiences that are less applicable today than they were even ten years ago. </p>
<p>The staff at the Amelia office in Marksville weren't thrilled when NARO-LA came to town for their AC town hall…</p>
<p>What Kirk does is not illegal and as long as his field representatives are honest with mineral owners, not unethical. I do understand your concern, TD,P. I think that many landowners in this area of central LA are not well informed and are vulnerable because of past leasing and development experiences that are less applicable today than they were even ten years ago. </p>
<p>The staff at the Amelia office in Marksville weren't thrilled when NARO-LA came to town for their AC town hall presentation. Informed land owners tend to ask too many questions and hesitate to jump at the first lease offer.</p>
<p></p> Skip, Amelia doesn't have lan…tag:gohaynesvilleshale.com,2018-09-03:2117179:Comment:37422992018-09-03T17:42:31.029ZTwo Dogs, Piratehttps://gohaynesvilleshale.com/profile/ThomasRScarbrock
<p>Skip, Amelia doesn't have landmen working for them all the time unless you would consider hiring a local with no experience to be a landman. I know that some on here think highly of Kirk but this type of operation is what I consider to be the type that sometimes give landmen a bad name. When people call for my advise on Amelia, I always tell them that if it would be me, I would pass on their offer.</p>
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<p>Skip, Amelia doesn't have landmen working for them all the time unless you would consider hiring a local with no experience to be a landman. I know that some on here think highly of Kirk but this type of operation is what I consider to be the type that sometimes give landmen a bad name. When people call for my advise on Amelia, I always tell them that if it would be me, I would pass on their offer.</p>
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