Replies to This Discussion

Permalink Reply by David Blaine on August 16, 2011 at 1:48

Skip is Tacoma leasing in North Caddo Parish?

Permalink Reply by Skip Peel - Mineral Consultant on August 16, 2011 at 1:52

A member of the North Caddo group posted a comment that land owners had been approached quite recently in the Mooringsport area.  No information other than that.

Permalink Reply by David Blaine on August 16, 2011 at 1:59

Thats where I live, but I havent heard anybody say anything about and I myself have not been approached by any one. Guess we'll just sit back and see what happens. I'm in section 27.

Permalink Reply by James Wilson on November 14, 2011 at 6:51

Just recieved an offer from Tacoma on a 77 ac tract in Sec 8-19-15 in north Caddo Parish.  Initial offer was $300 & 20% for 3 years with a $200 renewal for 2 years.  Rather surprised by the offer.

Permalink Reply by Skip Peel - Mineral Consultant on November 14, 2011 at 7:21

Tacoma has not filed any leases in their name with the Caddo Clerk of Court as of this date.  The question is, for whom are they acquiring leases?  Without knowing the company behind the N. Caddo leases it's impossible to make an educated guess at what the target formation may be.  I would counsel patience. 

Permalink Reply by Rick on April 22, 2012 at 5:34

Hi Skip,

I'm brand new to all this.  Tacoma has contacted us with an offer of $500 and 22.5%.  Are you still counselling patience as you did back in November?  As yet, there has been no indication of any other interested parties. Thanks in advance for any advice.

Permalink Reply by Skip Peel - Mineral Consultant on April 22, 2012 at 12:15

Rick, every mineral owner must weigh their financial position and tolerance for risk.  Whenever I see royalty offers in excess of 20% I think that the target is likely to be an unconventional reservoir.   And when I see Tacoma, or any other land company, offering 22.5% I consider that they have a commitment from the client for a royalty override equal to the difference between what they can get lessors to accept and 25%.  Not knowing exactly who Tacoma represents makes it difficult to go much further with any specific analysis.  If you do not have a large acreage position and $500/acre will accomplish some worthwhile financial goal, take it with the understanding that the bonus per acre and/or royalty may go higher for those willing to be patient until the operator is revealed.  The important point is to make a decision and then be willing to live with it no matter what happens later.  There are few guarantees in emerging plays.  It is a possibility that Tacoma's client may not deal with you directly if you do not have significant acreage in a highly desirable location.  If you can get the beneficial and protective lease language that is important if the wells are successful and long term production results, I would think 22.5% is okay.  Good Luck.

Permalink Reply by Rick on April 23, 2012 at 2:38

Thank you very much for the most informative reply, Skip.  We have about 150 acres.  The family has no pressing need for the bonus money, so it may be that we'll wait a bit and see how things develop.

 

Thanks again for your timely response and all the information.

Permalink Reply by Skip Peel - Mineral Consultant on April 23, 2012 at 2:53

Rick, generally speaking, lessors get the best lease terms when an operator has commenced actual development.  When the first wells are drilling is a good time to negotiate with the understanding that the terms could improve to some extent if the exploratory well(s) prove profitable but that all interest (and offers) could disappear completely if the wells are not economic.  If your 150 acres are contiguous in the same section and would be contained in a single drilling unit it is unlikely that an operator would commit to develop that unit with you unleased.

Permalink Reply by Rick on April 23, 2012 at 4:32

Skip, thanks once more for being so helpful.  You're most generous with your time and expertise.  I really appreciate it.

Permalink Reply by Coonman on October 18, 2012 at 3:04

Being 6 moths later and knowing that it is Adanarko......any thoughts?

Permalink Reply by Skip Peel - Mineral Consultant on October 18, 2012 at 3:20

Not really, Coonman.  My prior comments are applicable regardless of the particular company behind the leasing.  Anadarko may eventually deal directly with a small number of mineral owners but everyone else will have to lease through one of the land companies working on Anadarko's behalf. Holdouts in a unit with a well about to be completed might get the 25% but that's not a given.  Specifics of the mineral estate are important and there are no pat answers without specifics.

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