ROYALTY INTEREST LEASE OFFER Houston, Texas company for Section 35-Township 10 West- Natchitoches Parish

March 19, 2020

I have received a royalty interest lease offer within the past week from a Houston, Texas company for Section 35-Township 10 West- Natchitoches Parish for a five year lease term.  Has anyone else received an offer recently (from March 19, 2020) in this region ?  If so, what type of comparable amounts are we looking at per acre.  I am a bit leary given the economic circumstances now regarding the Coronavirus outbreak in Louisiana.

Thanks in advance.

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That is what you get with 95% of unsolicited offers. Fishing expeditions.  There are however some surprisingly aggressive offers currently for minerals that have new wells coming on line in the not too distant future.  Buyers are largely focused on near term Return On Investment (ROI).

I want to say they got up to 9000/acre for 70 acres for me.  I don't remember who they were.  

I'd say that qualifies as surprisingly aggressive.  The top of the market in 2008/2009 was $10,000 an acre for minerals under a quarter royalty lease.

There were two people in my section who sold.  One for 6800 and the other for 7200.  Im gonna say they kept on me just seeing if there was any number I would settle on which there wasn't any.

I'd say by your avatar, the force is strong with you.  And you're in a good Haynesville Shale location.  Good Luck.

I just received an offer in Sect 34-11-10 for $1,500 per acre with 1/5th royalty for 3+2 years

Sounds like that is a lease.  I received an offer from them to buy.  Im not aware of what the going rate for leasing is right now in that area but I would be more concerned about the 1/5th royalty and then deductions rather than the $amount

34 is an Indigo operated Haynesville unit, also prospective for Bossier Shale, and Indigo has a "spacing application" (this is not a well permit) which includes a single HC (Cross Unit Lateral) well for S/2 of S22 & S27 & N/4 of S34 on the hearing schedule for 4/21.  It could be many months after that date that Indigo will be ready to drill that well, so no need to get in a rush.  Know your negotiating position and reach out to Indigo to begin a conversation.  Let me know if you need any help.  Do Not lease to a "flipper", only to Indigo or a land company representing the company.

Sounds like some "clean up" leasing by an operator but could be a flipper. 

I received one today (that makes two in recent weeks) for that general property location.  The one I received today by mail was from an East Texas.  I never got offers like that in 2008-2009 when they were pouring out top dollar $$$.

Early on there was some really misguided XTO leasing in NW Natchitoches but no follow on offers to buy minerals or royalty because the first Haynesville wells were big disappointments.  Now Indigo has proven economic some of that small corner of the parish.  And the fact that the company is actively drilling their leases draws the interest of mineral/royalty buyers.

Thanks for the information.  I haven't signed a thing to date.  My attorney advises me.   I received another royalty offer from an East Texas company in the mail today, April 3, 2020.  Again, thanks for you input on this topic.


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