Replies to This Discussion

Permalink Reply by Butterfoot on September 3, 2008 at 10:12

Received offer from EOG landman 9/3/08 on interest in David Lane SV A-242, Marion County. $1500.00 per acre and 3/16 for 3 yrs with 2 yr option. I rejected. Countered with $5,500.00 per acre and 1/4 for 3 yrs with no option. The landman said I was crazy. I have over 1,400 acres in east end of Marion. I believe I will get my price at some point.

Permalink Reply by btj on September 4, 2008 at 3:01

I know of a lease just directly across the river from the D. Lane survey, A-242 that leased for twice your offer.

Permalink Reply by Dan Carter on September 4, 2008 at 10:14

You may never get your price, but you'll know where the market is headed in 90 to 180 days. Then you can make an educated assessment of the playing field and get whatever it is that you can get!

Permalink Reply by Butterfoot on September 5, 2008 at 0:23

Received offer from Devon rep from Ft. Worth office 9/4/08 on interest in James Williams SV A-415,Marion County (on stateline), $1,500 per acre and 1/4 for 3 yrs, no option. This rep was so green, when I told her I had been talking to Chesapeake she stated that she did not know that Chesapeake was leasing in East TX. I do not think she was acting. Some of this "landmen" were selling cars last week. She did say Devon was interested in east Marion and Cass Co, but at that price for now.

Permalink Reply by Jim & Lyn on September 12, 2008 at 8:21

How are the negotiations with Chesapeke going on your 1400 acres now? What surveys does your land include? Is it for all minerals, oil, gas of both and are they wanting all depths released?
Jim and Lyn (Marion County)

Permalink Reply by michael w. eiser on October 3, 2008 at 15:24

I just read your note of sept.3.I have 2800 acres in cass and marion,to date I have heard nothing from any of the landmen or the companies.I too have heard that things have slowed down.I will let all know if anyone contacts me. MWE

Permalink Reply by Ronald Merrill on September 30, 2008 at 11:13

I have 98 acres 5 miles North of Jefferson in two parcels next to each other at 38 ad 60 acres.

I have not been approached but do know a oil and gas company that has set up offices in Jefferson to buy leases, and they would lease mine but I do not like the price. When I asked him the reason he said that he believes the shale formation in Marion county is like the formation in Panola, Shelby and Harrison counties but he does not have to compete with the big boys so much. He also believes it will be in play in another year and he will make a lot of money "turning" his leases

It appears the companies/landmen are downplaying Marion county to keep it cheap.

Does anyone have an opinion or knowledge of the prospects in Marion county?

One Geologist told me to wait a year and all the companies would be knocking on my door.

Also what does the recent gas price down turn mean?

Chesapeake has announced that is putting several of its wells at rest does that mean the boom is over?

Thanks for your reply.

Ron

Permalink Reply by Marilyn on September 30, 2008 at 12:54

We have 170 acres near Caddo Lake on the Texas side of the border with Louisiana. It seems things have slowed down a bit......probably due to the uncertainty in the economy and the lowering of the price of a barrel of oil. I do feel like there are mixed messages out there. Chesapeake says they're slowing down yet Plains, in a joint venture with Chesapeake, say they'll concentrate on the Haynesville Shale now to the exclusion of their other shale areas. (http://www.forbes.com/equities/2008/09/25/plains-exploration-occide...).

I do think, from what I've read, Marion County is in the Haynesville Shale. It could be correct that oil companies are downplaying it now to get cheaper prices on leases. Patience is the key and it may be a bit of a wait now until it becomes full blown again. I imagine the oil companies are presently dealing with the leases they have already acquired and the subsequent drilling.

I have a brother in Fort Worth who recently got $25,000/acre for a lot he owns in the Barnett Shale. He emphasized to me that the people who do best in that shale area deal directly with the oil companies rather than the land men. So when the Haynesville picks up again, we should share name of oil companies to contact (addresses, phone numbers, etc.)

Good luck and let's keep each other informed. Just quite slow right now for probably various reasons. If anyone else has any enlightenment on this situation, please let us all know. Inquiring minds wish to know. :-)

Marilyn

Permalink Reply by Ronald Merrill on October 1, 2008 at 5:02

I agree with your brother and I have several of the phone numbers but I honestly think we are a year away from decent offers.

I live in Flower Mound and near here 2 years ago in the Barnett Shale leases went for $250.00 to the eager beavers. Those that waited are now getting $25,000.

The problem is that as long as people in Marion county take the low offers that is where the number will be. Only when people say no and wait will the prices go up.

As for Chesapeake My uneducated opinion is that they are manipulating in a legal way the price of Natural gas and expectations by announcing reductions in drilling. Of course they get a cut off all of Plains drilling and Plains is going full speed ahead so their announcement is a bit of a game.

We need Automobiles and trucks using CNG.

Ron