Replies to This Discussion

Permalink Reply by Shelley on February 23, 2009 at 16:19

On hwy 21 west of town down by Nichols Lane and Denning is doing very well from what we have seen riding down there. Lord have mercy there are wells everywhere down there. Notice today that rrc permit from Red River permit for attoyac area.

Permalink Reply by Bill Williams on February 24, 2009 at 14:23

I signed up with Cabot. Great company, but it seems like they are focused up north in the county. Thanks for the replies to my post--hopefully us southern folks will see some activity around rosevine and chinquapin soon

Permalink Reply by intrepid on February 24, 2009 at 14:57

THat's great news, Bill Williams! Hope you did great on your lease terms. Care to enlighten us a little on what your bonus ran and the %. If you don't mind. It sounds like it's a new lease and could be good guidanvce for some still waiting to sign. Again, congrats and good luck!

Permalink Reply by Shelley on February 25, 2009 at 2:51

Mr Williams, so you sign up with Cobot . Now your land is south of the county....... Which is great news , because I didn't know that Cobot was leasing in that area... I thought Devon, Encana & Eagle were the only ones leases or had leased in that area..... Good Luck....

Permalink Reply by Bill R on March 10, 2009 at 8:53

Okay, another update for my fellow San Augustine and Shelby county Shalers...
We now have confirmation that additional wells are being drilled on the various family holdings by Southwestern and Cabot around the County line area. In addition, O'Brien is drilling just over the border in Nacodoches county and Devon is popping some holes above the county line in Shelby County. I will update as I hear more or have any other leases offered by Landmen in the near future.
Sounds like several of the company's plan to go ahead and pop some holes down into the Haynesville even with the lower per K gas prices. I wish I understood more of the Oil biz... but I am learning... mainly thanks to all of the helpful people I have met on these discussion boards. ><(((({ * >

Permalink Reply by JWC on March 10, 2009 at 10:09

Thanks for the update Bill. Keep'em coming. Good to hear their is a lot of activity in the counties.

Permalink Reply by jffree1 on March 13, 2009 at 5:41

Bill, They will have to get some kind of production in order to hold all the land leased, if it is not already HBP. No matter what the commodity price is, they can drill and shut in for the short term. CapEx funds are allocated and will be used to prove up and hold the acreage until prices improve. They have begun shutting in wells, prior to completion (fracing and tying in to gathering line), while waiting for the well services costs to come down further, along with looking for higher gas price.

Permalink Reply by Bill R on March 23, 2009 at 8:53

Yeah, that is what one of our family members down there told us as well. The oil/gas company pop a hole, evaluate the production, and then cap it until the demand and price go back up. He said that once they have an 'active' hole they can continue to extend the leases indefinitely without paying out any royalty monies.... is that a true statement? This member works in the industry, so we tend to listen to his advice most of the time, but then again, he is the one that had us lease a lot of land at $250.00 an acre back in 2007.

Permalink Reply by 5thGenTexan on March 24, 2009 at 4:35

"without paying out any royalty monies.... is that a true statement? "
Depends on your lease. You should have a "minimum royalty" clause that says that they have to pay you a minimum royalty of $xx per acre within xx days or the lease terminates (this would only apply after the original lease term had expired of course).

Permalink Reply by Bill R on March 24, 2009 at 8:30

Yeah, from what I understand, per the language of the lease agreement is that they only have to pay us a 'yearly bonus' based on the original " per acre " ... which I guess could be considered to be a 'minimum royalty' clause... this land was leased a while ago on a four year lease with a two year renewal clause, which in the last months of two year extension drilled a well and capped it. Under the agreement, they now retain the rights to access and drill the property while making the minimum payment. During the last go-around, my take was $43.00 for the two years. Two of my cousins think we should bring the whole thing before an lawyer and let him make call on the legality of the lease. Hey... Thanks for giving me something else to dig into on the agreement paperwork.

Permalink Reply by jffree1 on April 1, 2009 at 13:25

I think I would follow through with that "lawyer" thought, at the very least, to look over your lease and see if there might be a way out of it.

Permalink Reply by Doug Fitzgerald on April 18, 2009 at 13:07

I just learned yesterday that Cabot is going to put a well south of 21 near Thomas Cemetery 5 miles west of SA this is just 1 mile west of me.
If it makes a good well maybe EOG will want to drill in my lease !!!!!!!

Doug

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