Replies to This Discussion

Permalink Reply by fm on June 10, 2015 at 3:39

rumors i have hear have been 500. to 20000. mostly choudrant area & 1/4 is always better hope this helps people in lincoln parish pretty quite

Permalink Reply by fm on June 10, 2015 at 3:40

srry meant 2000.

Permalink Reply by Skip Peel - Mineral Consultant on June 10, 2015 at 3:59

fm, you have 15 minutes from the time you post a reply to edit it. 

Permalink Reply by Breesus on June 12, 2015 at 13:57

This week the offer has gone higher than I previousely thought it would and we have not agreed yet on a deal.  May hold out to see if we get other offers over $1,000 an acre.

Permalink Reply by L Faber on July 12, 2015 at 5:04

We own land between Ruston and Grambling in the Hwy 80 area, we previously leased 2 properties but just this week were offered $850 an acre on a third parcel of land.

Permalink Reply by Skip Peel - Mineral Consultant on July 12, 2015 at 5:16

Thanks for the input.  I'd like to remind the members that bonus prices alone (without the royalty fraction) provide only a portion of the important terms to be considered.  Some of the highest bonus offers are currently coming from speculators who offer lower royalty because that is their perceived future profit.  If the royalty is 1/4 then $850 is in the current fair market range for small to modest size mineral tracts.  For the vast majority of mineral owners (between Ruston and Grambling is a good location) the royalty is much more important than the bonus.  And there are a number of lease considerations after royalty that should be a higher priority than the bonus.

Permalink Reply by L Faber on July 12, 2015 at 5:27

The royalty is 1/4 on all our leases (we don't sign for less than that). 2 parcels are right outside Ruston city limits on Hwy 80 west, one on the north side, one on the south side (the one on the north side is what was just offered $850). the other parcel is on Rodgers Road. WildHorse has the first 2 leases, Beta Land Services out of Lafayette was the last to contact us, I'm not sure who they are leasing for.

Permalink Reply by Skip Peel - Mineral Consultant on July 12, 2015 at 5:37

As you may know, "Wildhorse Resources" as an operating entity no longer exists.  Memorial Resource Development (MRD Operating) acquired all their Terryville Complex assets last year.  "Wildhorse Resource Management" (Wildhorse Reources II) has been leasing, forming units and permitting wells (2 drilled, 4 drilling) to the east in the Tremont and Choudrant fields.  It would be helpful to know whether Beta Land is representing MRD or Wildhorse Resource Management.

Permalink Reply by L Faber on July 12, 2015 at 5:48

I will find out

Permalink Reply by Skip Peel - Mineral Consultant on July 12, 2015 at 6:17

Thanks. That could be beneficial information for those who are un-leased but in areas where offers are being made.

Permalink Reply by L Faber on July 14, 2015 at 10:02

This is the reply from the Beta Landman....

Beta is leasing on behalf of an operator in the area. I have not been told who the operator is only they current have operations in the Ruston area and are in the process of developing more sites.

Permalink Reply by Skip Peel - Mineral Consultant on July 14, 2015 at 10:21

Not surprised as land companies go to great lengths, quite often, not to identify their client.  There are three categories of companies currently offering leases, the best I can determine:  two groups of multiple land companies working for separate operating companies and a small number of speculators who have assigned some of their leases to an operator.  That and the fact that many land/mineral owners still do not understand that Wildhorse Resources has, in a matter of speaking, split into two separate entities makes things a little complicated.  It is usually best to be leased to the company that plans to operate (drill wells) as they tend to offer the best royalty with the least fuss.  It is always a good turn of events for un-leased mineral owners to have multiple companies competing for their lease rights.  Mineral owners just need to know that the competition exists and which companies are interested in their particular area.

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