Replies to This Discussion

Permalink Reply by Dion Warr, CPL on January 13, 2009 at 10:30

To follow up:

Then again, lots of the 'landmen' that many of you ran across had one year's worth of experience or less, and were 'warm bodies' hired to cover the shortage of qualified people to cover the area. So why would one not reasonably expect your collective disdain for 'landmen' (really, leasehounds)? Many of them didn't have the experience to discern what 'the truth' was, much less be able to decide whether to tell the l/o or not.

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Permalink Reply by Dion Warr, CPL on January 14, 2009 at 11:21

Gosh Darn:

I definitely enjoyed my years down in N.O. F & J's was one of my favorites for poboys and general lunch fare, but I absolutely loved Domilise's. When all of the 'old folks' were still alive, a buddy of mine and I got to talking over a beer and sloppy roast beef poboys and before we knew it, they were all but finished cleaning up and closing for the day. As we started to get up to leave and starting to apologize for our loitering, we were told "No, sit down, eat your food, drink your beer, and pull the door behind you when you're done." With that, they turned out the lights except for the area we were in, went up the short flight of steps to the back door, opened the door (into their house), and closed it! Needless to say, we finished our meal, tout de suite, and left. But I never forgot the hospitality, or the flaky, semi-crumbly crust on the french bread.

One of our other favorites in Mid-City was Liuzza's near City Park. Liuzza's: the place where you can get drunk on the onion rings. Watching a game, eating batter-fried onion rings, and drinking ice-cold (ice flakes in the beer ice-cold) beers in fishbowl-sized glasses... Mmmmm....

While I was down there, Louisiana Seafood Exchange used to (don't have it anymore) have a "deli/diner"-type restaurant ("room") where they served, you guessed it, their seafood fare. IMO, the best bargain for a poor broke south LA college student was their oyster poboy, served on a full muffaletta bun (10-12" in diameter). The 'thing' was literally stuffed with fried oysters to the point that what fell off the poboy was enough to make full leftovers with. It cost $10.25, and probably had $15 dollars worth of fried oysters on it.

Probably our most favorite 'hangout area' for food was Lakeview / Bucktown area. Good food, the lake right there, Deanie's, Carmine's (the original), Fitzgerald's, man...

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Permalink Reply by Dion Warr, CPL on January 18, 2009 at 12:56

GD:

Was this the ubiquitous "brown-eyed girl" alluded to in V. Morrison songs that I sang long about (with Late as Usual) in the Tropical Isle? LOL!

Permalink Reply by Dion Warr, CPL on January 13, 2009 at 10:29

Earl:

OK, let's not be circular (not that I was, but for the sake of debate...). In your area, for HS: 1/4 RI would be the standard. I would not accept 1/5 RI for HS rights at any bonus, until someone starts drilling dry holes or exploration in the HS stops almost entirely. Since March 2008, the bonus paid per acre has been wildly variable, however, almost all leases acquired in the area have been taken at 1/4 RI. Why would someone suddenly take 1/5 RI? That was the basis of my question, not 'spin', as you put it.

Based upon the sheer numbers of leases acquired at 1/4, "no cost" royalty, I would not accept anything less than 1/4 RI, and with no deductions for extraneous costs (treatment, transportation, etc.), less and except severance taxes.

Why would I respond with the question about 1/5 RI? Because it wasn't part of the original discussion, at best. At worst, it was a "red herring", low-ball offer that I wouldn't ask an HS l/o to entertain at this point. Neither would Snake; thus I felt it disingenuous for him to bring it up.

Straight enough for you?

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Permalink Reply by Dion Warr, CPL on January 13, 2009 at 11:01

Earl:

You're right -- didn't see that comment. I was still going off of Rachel's original post and accepting 25% as a given.

Don't know about yours; my cannon has probably been ready to fire a shot across someone's bow since spending most of my day yesterday waiting on a "panel call" for my jury pool which never came.

Advice: don't look down the bore to see if it's loaded. Check to see if the fuse in fresh and for powder spill.

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Permalink Reply by Bobi Carr ("parker") on January 13, 2009 at 15:38

Earl,

Dion has helped a friend of mine long before the Haynesville Shale. He did everything that he represented that he would do for them and they are happy. This was about 4 years ago.

If things had worked out differently, I would be a landman myself. I have always tried to handle all of my business in an honorable fashion. I don't believe that doing this and being a landman are mutually exclusive.

From my personal knowledge Dion is a straight shooter.

I appreciate all of the information that he has shared on the site.

I put his information up there along with Two Dogs and Jim Krow's.

I think that he is someone who can find the middle ground between what the oil and gas will do and what a landowner wants done.

Just my opinion.

Parker, trying to stay away from the cannons, but sharing what I know.

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Permalink Reply by Snake Stewart on January 13, 2009 at 18:12

Parker,

I too respect and appreciate the insight that has been given by some of the insiders here. I respect Mr. Warr as I do most individuals that I converse back and forth with on this site.But that certainly doesnt negate the wealth of info that Earl & Earlene have spent countless hours posting and sharing with us all.
E & E have done more for the M/L owners on this site, then most of the so called Industry insiders have tied all together. Because they see the same picture that us mineral owners do.

Because of the knowledge and understanding that they possess (unmatched IMO), they dont have to have the O&G's view. They already know it.Better then most of those guys do. While they have spent countless hours asking the tough questions without fear of reproach or need of reprieve, they have been for the benefit of people like myself moreso then for themselves.

Without people questioning or checking statements made by each and every individual on this site, how can we claim to be spreading information vs. rhetoric. And yes that goes both directions. If I cant answer a question about a statement I make or point out the documents by which the statement was made, I need to stop. Its that simple. Information cant change hands if we all possess the same knowledge. We need each other as long as there is information to learn. But not at the expense of allowing questionable statements to go unchecked.

If there is no personal benefit for a persons involvement in this situation, other then the increase of knowledge for others, is there a more noble cause ? I for one think not.

I just hope that the straight shooting is allowed to continue from both sides of this thing. If not then Keith needs to rename the site ," Landmans Anonymous" or something. Oh yea , already got one of those sites.

http://www.landman.org

HA!HA!HA!HA!
Just kidin Lanmans' !!!!

Have a good one Parker. Tell "D" I said hello.

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Permalink Reply by Bobi Carr ("parker") on January 13, 2009 at 18:31

Snake,

I don't have a cannon, so I'm not aiming it at you or anyone else for that matter.

I'm glad you are here to shake things up. I'm glad that you ask so many questions that sometimes make me rethink my perceptions.

I just don't want the cannons shot at the good guys and gals.

I'm sure Dion can hold his own without my help. I just thought I would put my two cents in.

If Dion has a kool-aid stand, I haven't spotted it (yet).

Permalink Reply by Snake Stewart on January 13, 2009 at 1:34

(QUOTE by Carl)
I really believe that there's a "pecking order" that's assigned to these leases. The units that were paid the highest bonuses will get drilled first.

Great point Carl, thats reason #1 for big bonus. To see how serious an operator is about drilling vertically into your unit.


The operators have too much bonus money invested to let that slip away. If they have to let a few cheap leases expire they'll just resign them at these new lower rates or move on if the area has marginal production.

Exactly what I have been screaming for 10 months


I'm afraid that folks that don't lease could be waiting many, many years for a well.....if at all.

I didnt say there wasnt any risk involved. It may be easier to say O.K. to less then chump change & a weak lease if you have a fear of being left out. If it were easy, everybody would have done it.

S.S.-Why would any operator want to blow millions on a vertical well just to save (HBP) a 6-figure lease bonus? At this point in the game who would sign a "bad" lease? If you don't have an knowledgable attorney handling these negotiations you deserve what you get.

Simply stated, because its worth billions to them in the long run.
Have a good one.

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Permalink Reply by Spring Branch,mineral owner on January 13, 2009 at 4:07

I couldn't agree more. The sunk costs are just that---sunk. If the operator can't get all the sections drilled, my opinion is it will drill those sections where the drilling effort will generate the fastest and highest revenues.Time is running out......I have one drilling rig available. Two sections remain undrilled with leases expiring the same time. In one section I paid an average of $20,000 an acre, 27 1/2% royalty and there is little pipeline infrastructure nearby. In the other section I paid an average of $350 an acre, 1/5 royalty, and there is pipeline infrastructure close by. Which one am I going to let expire?? Forgive me, but this is a nobrainer and the answer is not the $20,000 an acre section.

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Permalink Reply by insomniacnla on January 13, 2009 at 5:00

Friends and family of mine are unleased and own approximately 10 acres in a 640 acre unit. A drilling permit has been issued and a landman has extended an offer of $1,000 per acre and 20% royalty, and stated that his company has more than 80% of the section leased already, that the o/g company does not need their lease before drilling is to begin in February.

What would the drawbacks be of NOT signing the lease, other than the dry hole risk and the accounting problem?

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Permalink Reply by insomniacnla on January 13, 2009 at 6:26

I think that the section has already been unitized but I will check later today. The landman said he was with Long Petroleum and that Long and Exco partnered up and will drill the well. It was Exco that applied for and received a permit to drill the well. I think that Long Petroleum is anticipating that Exco will drill the section.

I was just wondering what the benefits of leasing would be for the landowners if a well is going to be drilled anyway next month. They know that they may have to keep up with creative accounting.

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