Replies to This Discussion

Permalink Reply by CenturyMan on June 16, 2012 at 15:22

Skip PeeL - I see (2) $ amounts on each of these lease results.  Could you explain what the 2nd $ amount means?

Also -- are these 1 year leases?

Permalink Reply by Skip Peel - Mineral Consultant on June 16, 2012 at 15:37

Yes, state leases have a one year term but may be extended for additional years by a payment of one half the original bonus per acre payment for each year.  For example, Tract 42714 is 638.96 acres times a bonus of $751 = $479,858.96.  If not drilled or released the lessee would have to make a payment of one half that amount or $239,929.48 to extend the term for an additional year.  Excepting cases where the lessee is a speculator, most energy companies assemble the bulk of their private leases before taking any applicable state leases.  In other words they plan to drill to hold the lease before the one year expiration.

Permalink Reply by CenturyMan on June 16, 2012 at 15:55

Thanks Skip for the great explanation.  Impressive #'s.

Permalink Reply by Skip Peel - Mineral Consultant on June 16, 2012 at 16:23

You're welcome.  State leases are the only place that lease bonus amounts appear in the public record.

Permalink Reply by Keith on June 20, 2012 at 13:03

The lease that intrigued me was the 98 acre tract that I think was was a school board lease.

That lease recieved a $801 per acre bid.

From what I can tell many of the leases only had one bid. EOG!

I wonder if Halcon or others interested in Avoyelles got caught sleeping?

Permalink Reply by Skip Peel - Mineral Consultant on June 20, 2012 at 16:24

EOG and Halcon (Floyd Wilson) appear to have learned a lesson from the Haynesville Shale.  That lesson is to avoid head-to-head competition for leasehold in unconventional plays wherever possible.  I can assure you that Halcon was aware that that particular lease tract was available in the state auction.  It's in an EOG area, not a Halcon area.  What many land/mineral owners fail to realize is that companies that operate (drill wells) aren't generally interested in buying leases in areas where a competitor already has the majority of lands under lease.  Only the company with a majority of acres is in a position to operate.