Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on March 24, 2011 at 5:09

Renee, I doubt that hopes to lease cheap in the future have anything to do with Encana's decision to let 12,500 lease acres expire in this area of the Play.  I think it's simple economics.  Encana's capital is better spent developing their leasehold that is proven during this extended period of depressed prices instead of continuing to drill "step out" wells into an area (further south) that has serious challenges.  The last Encana webcast had some Q & A on the subject.  A VP of Encana stated that the challenges related to increasing temperature and pressure due to increasing formation depth and the expectation that Encana was approaching an area of faulting.  I don't think that Encana or any other shale focused energy company believes that bonus will ever go back to $300 or $400 acre.  The challenges in north Natchitoches Parish will be tackled by some company or companies in the future when nat gas prices are higher.

Permalink Reply by Ben Eagle on March 25, 2011 at 4:31

Good poss, Skip

The days (for the landowners) of getting the big bonuses is over. 2008 and the hard driving CHK which drove the prices (as is there MO) is gone, especialy given the price of gas and/or the forecast of gas pricing  anytime soon. Northern Natchitoches, given depth, heat, pressure, faulting and now H2s is a tough sell given the profit lines and risk per drilling a $6-8 million well on $4.33mcf would have a hard time crossing given the decline curve of 80% first year. Doesn't compute.

 

 

Permalink Reply by Renee Rains on March 24, 2011 at 5:45

Thanks Skip.

Permalink Reply by Renee Rains on March 25, 2011 at 5:17

Ben Eagle, we are not asking for the $11.000.00 to $25,00.00 that other people got.  We would like a fair price of $5,000.00 to $8,000.00.

Permalink Reply by Lynn on March 25, 2011 at 11:33

Hope you get something....I have been sitting on mineral rights in Natchitoches Parish on 600 acres in 11N 8W and no one has ever offered a dollar. Good luck

Permalink Reply by Robert on October 28, 2011 at 9:58

Does anyone know how much the leases per acre top out in Shreveport? I heard it got up to 30k . True or Flase

Permalink Reply by Skip Peel - Mineral Consultant on October 28, 2011 at 10:07

I believe there was one $30,000/acre bid for a mineral tract in the monthly state auction.  I don't think there were any leases for private lands at that amount.  There were rumors of some at $25,000/acre but I could never confirm them with sources that were reliable.  I do know of some at $20,000/acre however they were few in number in late summer '08.  By then all the large mineral estates not HBP were leased.  The total number of leases at $20,000 or more would probably be low triple digits in number out of tens of thousands of leases targeting the Haynesville Shale.

Permalink Reply by Robert on October 31, 2011 at 7:10

Skip thanks, How does it work if you get a letter such as Anthem Oil saying they have 30million to buy all or some of Mineral rights and we sign a lease 4mnths ago. But no activity so far. We have 470 acres. They hit oil my property in the 90s and they were doing 1500 barrels a day then after 3 months they put the wrong mud and it stop. I had to get back on the tractor :(

 

Permalink Reply by Skip Peel - Mineral Consultant on October 31, 2011 at 7:24

Robert, I would tell them that I don't care how much the have to spend, only how much they are prepared to offer me.  Now you have to be careful with the words you use to describe your situation and what the offer is actually for.  Anthem Oil is offering to purchase your mineral rights.  Depending on your location, you may be able to get multiple offers to sell all or a portion of your mineral acreage if that's what you wish to do.  Lacking any specific information on your mineral estate other than the fact that you are posting in the Natchitoches Parish group, it's hard to offer any advise except that the 1990's oil likely has nothing to do with current activity and/or offers.  Be very careful with offers such as Anthem's and get professional help before you enter into any agreement.  You will get more advise and opinion if you post the location (section-township-range) of your leased minerals and what company you are leased to.  It might also help other mineral owners in that vicinity.

Permalink Reply by Robert on October 31, 2011 at 7:56

skip thanks. Its in avoyelles parish . I have three companies working on a proposal. I gave them just one trac to work on 20 acres being the W/2 of the NE/4 of section 38, T1S-R4E.  TAGCO Inc. as Lessee. I will start posting on Avoyelles section next OK.

Permalink Reply by Skip Peel - Mineral Consultant on October 31, 2011 at 8:03

Yes, it's important to post in the correct group when seeking information that is location specific.  Good Luck.