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Permalink Reply by RBH on February 17, 2010 at 7:34

CARTHAGE (HAYNESVILLE)-NACOGDOCHES-SINCE 1/1/2010

SAMSON
Submitted 01/06/2010 Approved 01/13/2010 689364 347-33133 SAMSON LONE STAR, LLC (744737) SILVER HAMMER 1H 06 NACOGDOCHES Horizontal New Drill - 13000 Approved
SILVER HAMMER #1h-DRILLING-CHIRINO 17 SURVEY

AMENDED PERMIT-DEVON BARTON #2h-DRILLING
CARTHAGE (HAYNESVILLE SHALE)
CARTHAGE, NORTH (BOSSIER SHALE)
NACONICHE CREEK (HAYNESVILLE)
NACONICHE CREEK (BOSSIER)
WILDCAT
EOG:
Submitted 02/09/2010 Approved 02/10/2010 691042 347-33141 EOG RESOURCES, INC. (253162) CRANE ET AL 1H 06 NACOGDOCHES Horizontal New Drill - 14500 Approved -CHIRINO 17 SURVEY
Submitted 02/16/2010 691386 347-33144 EOG RESOURCES, INC. (253162) WALLACE UNIT 1H 06 NACOGDOCHES Horizontal New Drill - 14100 Drilling Permit -MORA 827 SURVEY (BY PETROHAWK PETROLEUM CREEK #1H-DRILLING-MOST WESTERN DRILLING TO DATE)
Submitted 01/15/2010 Approved 01/19/2010 689835 347-33135 EOG RESOURCES, INC. (253162) HASSELL GAS UNIT 5H 06 NACOGDOCHES Horizontal New Drill - 13400 Approved -DRILLING PER BLOGS POSTED
Submitted 01/28/2010 Approved 02/01/2010 690485 347-33137 EOG RESOURCES, INC. (253162) MURRAY GAS UNIT 1H 06 NACOGDOCHES Horizontal New Drill - 14100 Approved -CHIRINO 17 SURVEY-DRILLING
VALENCE:
Submitted 12/29/2009 Approved 01/07/2010 689168 347-33130 VALENCE OPERATING COMPANY (881167) BARBO 1 06 NACOGDOCHES Vertical New Drill - 15000 Approved -CHIRINO 17 SURVEY-DRILLING
Valence plans to dual or commingle these zones upon completion.
NACOGDOCHES, E. (PETTIT)
WILDCAT
MARTINSVILLE, SE. (JAMES)
MARTINSVILLE (TRAVIS PEAK)
CARTHAGE, NORTH (BOSSIER SHALE)
MARTINSVILLE, NE. (COTTON VALLEY

Submitted 01/29/2010 Approved 02/05/2010 690520 347-33139 VALENCE OPERATING COMPANY (881167) TEUTSCH 1 06 NACOGDOCHES Vertical New Drill - 15000 Approved -CHIRINO 17 SURVEY-Valence plans to dual or commingle these zones upon completion.
MARTINSVILLE (TRAVIS PEAK)
MARTINSVILLE, NE. (COTTON VALLEY
CARTHAGE (HAYNESVILLE SHALE)
MARTINSVILLE, SE. (JAMES)
NACOGDOCHES, E. (PETTIT)

Permalink Reply by new guy on April 28, 2010 at 10:25

Hello All: "Total Novice" here. This is my first post. I beg your indulgence with my ignorance on the subject. The family has about 1000 acres in Chereno leased to Sonerra which is due to expire soon. They called a few days ago to find out if we had engaged in any other leases which we have not. We received a cash offer from a group out of Jacksonville for about $1.2mil to buy the minerals out right. How exactly should we go about finding out if anyone has any interest in drilling on the property? Any and all comments are welcome. Thank you!

Permalink Reply by j garrett on April 28, 2010 at 11:07

Don't sell. If you do want to sell, I'll beat that offer. When does your lease expire?

Permalink Reply by new guy on April 28, 2010 at 11:43

Our lease is due to expire the end of May. We've been told through the grapevine Sonerra has applied for a drilling permit relating to the property, but don't know how to verify that. We are not necessarily interested in selling the minerals, but have no idea what the value of the lease might possibly be. If someone is willing to offer $1200 an acre for the minerals, in my business (retail/entertainment production) we'd be looking at 5 to 7 times return. IE if I were the party is willing to offer "$1200 per acre" I would be looking for a 5 to 7 times return on my investment over a 5 to 10 year period. Is there a rule of thumb or rules of thumb we should consider? As I said, "total novice" here. Thank you j garret for taking the time to respond!

Permalink Reply by reallyoldguy on April 28, 2010 at 11:55

Ross: I have 1320 acres in the Totin survey just South of your survey. Im in the process of selling a portion of my mineral interest. I can tell you RIGHT NOW that 1200K per acre is WAY too low. Maybe consider selling a portion of your interest instead of the interest in its entirety.

Permalink Reply by new guy on April 28, 2010 at 12:03

Reallyoldguy: Thank you for your kind reply. Love your sobriquet by the way! Where do we find out where and what the prospects are? Is this a matter of going to the Nacogdoches courthouse and looking up the deeds? And how do we figure out what the "typical" if there is such a thing, return on a lease is? And for how long. In other words, if we were to take an offer for say, $2000.00 or $3k per acre now, how long would it take for us to recoup that same amount should we decide to go along with a "typical lease" say of 1/5 or 3/16? Songwriting I am pretty good at. Math, not so much. Thanks again!

Permalink Reply by jffree1 on April 28, 2010 at 13:32

You should be asking for 1/4 royalty. You may end up taking 1/5 but you should bargain hard for a quarter. The E&Ps are still low balling Nacogdoches County on bonus offers even after the EOG wells that have reported. You may not get 2-3 K per acre on a lease but it never hurts to ask for it.

My question... if you can get a lease bonus of at least 1K per acre why would you consider selling minerals for just a tiny bit more than that?

Permalink Reply by new guy on April 28, 2010 at 13:41

Thanks! That's a great question by the way. Here's how I'm thinking about it: It would depend on how long it would take to recoup the same amount of income. For example, if we could see 1200 per acre today, how long would it take to see that same 1200 over the life of the well? In other words are we better off taking a $1.2mil offer today in lieu of receiving the same amount over the next 10 years? Or if a well is successful what is potential for a return of how many fold that over the course of time? Does that make sense?

Permalink Reply by jffree1 on April 28, 2010 at 14:15

Sure it makes sense... time value of money. But, I'm telling you... the offer is not that great. I just think that you can do some better than what you've got on the table right now.

Permalink Reply by adubu on July 14, 2010 at 0:20

reallyoldguy---the Crane #1H just reported at 31mmcfd by EOG---WOW--that is in your survey above 1320 acres Totin Survey---what did you receive per acre on your portion of interest you sold---Where you leased to EOG? Are you in the well? Congratulation and I hope you sold only minimal acres.

Permalink Reply by reallyoldguy on July 14, 2010 at 2:42

Adubu: I saw that , yesterday, when EOG announced it. Looks like EOG's Murray well will report with similar numbers, No, Im not in a unit with the Crane. Although, I have 2 friends who are. Think maybe I'll 'sponge' off of them for a while...LOL! Im leased with Cabot. The financial end, of our mineral sale, is to remain confidential. However, I can tell you that I sold a total of 58 mineral acres to 2 different companies.

Permalink Reply by adubu on April 28, 2010 at 15:51

Ross Vick --your minerals are in very hot area. If your minerals are leased by Sonerra they will drill something before your leases expire to HBP the lease. or offer you a top lease then if they do and you don't have great terms in the lease go see a oil & gas attorney to help you with the lease. Your minerals 2 years ago when shale plays where booming before market fell you could have leased the minerals for $5000+ per acre. No one can put the value on what you area of minerals are truely worth. Who know if you have several formations you could have 40-60 wells on 1000 acres. Value Life Changing for your family. Your business sense is correct who would want to buy wants a high multiple return on investment. 1000 acres could return you 8 figures over next 15-20 years. IMO don't think about selling. If you need money immediately and hedge your bet maybe think about selling 100 acres but no more and at lot higher price.

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