Replies to This Discussion

Permalink Reply by om28v on November 29, 2009 at 5:15

the island and the uplift are two different things from the maps i have seen, what the geologic significance is i have no clue.

Permalink Reply by jffree1 on November 29, 2009 at 4:26

I think it's because we don't have enough infrastructure (yet) and it's a higher risk (less explored) area for Bossier/Haynesville depths. There was some talk last year about geologic anomalies in the lower half of the county but that shouldn't stop them in the north half.

Permalink Reply by ken hatcher on November 30, 2009 at 4:20

Every one take heart, last year i was being told the same things about my land around noble, la....unproven, to deep, on fringe, etc. one good well in the area changed everything. Now the play is moving futher south....don't be unreasonable but also don't lease your land so cheaply you will be kicking yourself a year later. ( or less)

Permalink Reply by jffree1 on November 30, 2009 at 4:51

Rick, I happen to agree that royalty is much the greater issue on a lease. I did notice that you used 1/5 instead of 1/4 in your example... do you think it is going to be diffucult for us (mineral owners) to negotiate 25% at this time? Or, were you just using a figure that works well in "what if" calculations?

Aside from this, I noticed that the Sabine River Authority is putting some lake tracts up for bid with a $1000.00 minimum on bonus. It was in the Sabine Co. Reporter last week under legal notices.

Permalink Reply by Jon Williamson on November 30, 2009 at 10:18

I think most who have leased in this area have been for 20% royalty, but it's early. Companies always go through and lease the low hanging fruit for less royalty, people who are uninformed or need money. It might be 18 months, but as gas creeps back to the $6-7 range, no way people will be leasing for less than 1/4. JMHO especially when wells being drilled come in 15-20Mmcfd or more.

Permalink Reply by ken hatcher on November 30, 2009 at 10:23

Words of wisdom jon.

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