Replies to This Discussion

Permalink Reply by Landowner on July 26, 2008 at 6:52

Thanks JT for this information

Permalink Reply by Dan on August 15, 2008 at 8:57

Regal Energy is mailing offers for Royalty Interest not Leasing/mineral rights! which for a non proven area with no 3d to the Haynesville, their offer is very high, higher than any other company, and it is very doubtful that other companies will offer the amount Regal is without at least a 3D Shot, more likely they will need a productive Haynesville well.

Additionally, you are right they will not drill b/c they are not purchasing Leases which would give them the right to drill, they are purchasing Royalty which they wouldn’t be able to sell for ½ of what they are offering Landowners.

Permalink Reply by JT on August 16, 2008 at 5:04

You must work for Regal or have an interest in it.
Lets do the math. 25 % free royalty on just 80 acres, with one well producing 8000 m/day in a 640 acre unit is well over $70,000 per month to the mineral owner. Regal offers $3000 per acre.
Regal makes a payment of $ 240,000 to the landowner / mineral owner. Within 6 months they have their money back after taxes. The landowner gets less than $ 150,000 after taxes and no future royalties. BOY that sounds like a bargin to me.
Mineral owners you are far better off to lease your minerals and get a bonus payment. Millions of $$$$ could come your way during the life time of the Haynesville.
I stand by my statement to all mineral owners. Do not be fooled by these companies that want to purchase your mineral rights.

Permalink Reply by Dan on August 17, 2008 at 8:11

70K/mo. seems a little high with gas currently under $8/mbtu. With that said, I agree 100% that if a well comes in at 8000 mcf/d and stays there for 6 months (which hasn’t happened in the history of any shale play in the continental united states) you should NOT sell your interest; BUT the likelihood of that happening is low considering that the strongest Haynesville wells to date have not sustained that production; Additionally, Bienville Parish has no well logs, 3-D or anything thing but a hunch to indicate the Haynesville is present. So, stand by your statement but if the Haynesville is not present or is present but thin or the price of Natural Gas falls like it has been (which will keep any company from drilling), then us landowners will be leaving a lot of money on the table. That is why I sold 50% to hedge my risk.

Permalink Reply by BirdDawg, plain ole' idiot on September 4, 2008 at 4:23

Dan,
Will-Drill drilled a deep test in Woodardville prior to the Haynesville Shale news and prior to their sale to Questar. They then went back abd had their logs, core samples, etc. analized and the Haynesville looked great.

Permalink Reply by JT on August 19, 2008 at 10:18

Dan this might be the right choice for you depending on what part of the parish your property is in. If you are happy with your deal then nothing else matters.
What we do know is, the HS extends into Western Bienville Parish maybe further.
I know that there are offers in that part of the parish for up to $20,000 per acre depending on how much land a person has and where it's located. I know this, it is not hear say.
We know that the wells in the HS in southern Bossier (Elm Grove area) started out at approx. 16mm/day and are down to around 13mm /day now. That is well above the 8mm/day I used as an example.
Earl Posted a thread on here, that stated the thickness in the Shale was over 200 ft near the Webster line. I believe that the information is correct. So we know they are doing testing in the Parish.
This thing is just getting started, and I truly believe most people will be better off if they are just patient, educate themselves about the lease agreements and hang on to their Mineral rights.

Permalink Reply by Dan on September 3, 2008 at 11:12

Well, our previous conversation doesn’t matter any more, b/c Regal Energy has pulled out of this area and wont purchase any more Royalty in Bienville due to " new negative Geological findings, in addition to multiple other factors,” which I heard from the horses mouth. By the way, when you refer to 20k/acre you do mean for leases not Royalty right? b/c Regal Energy only offered to purchase Royalty, which goes for a lot less than leases. For your sake, hopefully the HS is productive in Bienville Parish and the price of gas doesn’t drop any more or none of this will get drilled

Permalink Reply by Landowner on September 3, 2008 at 14:21

That is just crazy to say because of negative findings. They are in the process of running seimesic shoots right now. They don't even know the findings of yet. Talk is cheap Dan.

Permalink Reply by Jim 007 on September 4, 2008 at 2:32

My land has eight pounds of T N T one hundred feet down and unless it has learned how to talk to someone or something, there is no info. being reported pos. or neg. yet. They will be looking at whole picture, not a snapshot here and there. Just my thoughts

Permalink Reply by JT on September 5, 2008 at 4:55

I bet they left the area because no one would sell.