Replies to This Discussion

Permalink Reply by North LA on July 7, 2013 at 4:44

$150acre 20% and I don't know the other terms. Southern Morehouse parish

Permalink Reply by XAM on July 7, 2013 at 4:54

Active now are was this a previous offer from a few months back?

Permalink Reply by North LA on July 7, 2013 at 5:00

About a month ago from what I was told. I don't own the land so I don't know for sure. The offer is still there.

Permalink Reply by XAM on July 7, 2013 at 17:12

Who would you contact locally to engage Western for the potential to lease them acreage?  

Permalink Reply by Andrew on July 7, 2013 at 18:19

XAM, I don't know anyone who works for Western, but I'd caution against contacting any company to solicit a lease offer. If they want your acreage, they'll come to you, and you'll get a better deal than if you offered to lease property.

Permalink Reply by XAM on July 8, 2013 at 1:57

Thanks for the advice, will heed.

Permalink Reply by Andrew on July 7, 2013 at 16:39

Both of these companies fit in the no-mans-land between operating companies and pure lease outfits. These kinds of company are generally not speculators looking to buy low and sell high, nor do they undertake the drilling, completion, or operation of wells. Both companies are best called "pure exploration" companies, meaning that their primary focus is analysis of geology and play prospectively. They identify attractive prospects, build a position, and then partner with an operating company who can handle the engineering and execution side of things. As a rule these companies will take substantial stakes in the wells drilled on their prospects.

I personally don't see it as a negative that they do not handle operations themselves. While they stick to what they do best, these companies carefully vet potential partners to make sure that whomever does eventually operate on the leasehold is more than competent. If they are leasing acreage in the Brown Dense or elsewhere they have a vested interest in developing the acreage.

Would it be preferable to have a world-class operator like EOG lease the play? Sure. But often the big companies leave the real exploration to independents who are willing to bet big on their convictions. The big guys will come in and gobble the little guys if they ever find anything good.

As for the two specific companies, I am only personally familiar with WhitMar. All of my experience with them to date has indicated that they are an honest, legitimate company that is run by good people. If I had land in a speculative play, I would not mind leasing to them at all if the terms were right. That's more than I can say for quite a few "large independents" who have a history of bulldozing their lessors as soon as the lease is signed.

Permalink Reply by Skip Peel - Mineral Consultant on July 8, 2013 at 2:01

The lease areas and the offer terms sound familiar.  Reminds me of BTE.

http://www.gohaynesvilleshale.com/group/brown-dense-lower-smackover...

Permalink Reply by Cary Miller on July 30, 2013 at 6:12

We have leased several hundred acres in Holmes County, Ms. to them.  It's good to get more information about them.

What are our prospects of anything happening, or WHAT might we expect to happen with our lease, in the next four years, which is the term of our lease?   Your crystal ball is better than ours.

I have heard of other mineral leases in Holmes County near ours, presumably for the Brown Dense.   Any info/speculation on that area?   Thanks!

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