Replies to This Discussion

Permalink Reply by Brandon on April 6, 2010 at 2:27

You took the words right out of my mouth. I am looking for a company aswell for the same area. Seems like no one knows anything abou this area.

Permalink Reply by GoRicky on April 6, 2010 at 13:03

It's pretty much "held-by-production" on the East side, but Ellora, XTO and (I think) Chesapeake have offices there. LOL

Permalink Reply by Carl L Ward on April 6, 2010 at 13:41

What is 'held-by-production"?

Permalink Reply by Skip Peel - Mineral Consultant on April 6, 2010 at 14:22

Minerals that are under lease which are being produced. The lease remains in effect until such future time that production ceases. Many companies have leases with no production that must be drilled within their lease term. There is no compelling reason to drill new wells in leasehold HBP'ed during periods of depressed prices especially if an operator has leases with no existing production with the clock running on lease terms.

Permalink Reply by little ole 1st grade teacher on April 7, 2010 at 1:35

And what does Held By Production mean?
Some people say that as long as the drill hits the ground that is HBP.
Others say that the well must be producing.
Others say that the well must be producing and you must be getting paid.
What is the answer to HBP?
I have a well that was drilled but has been capped off. I'm assuming that my lease at this point is not HBP. It seems that they are scurring around to get a unit drilled before our lease runs out in July. That is the reason why I'm wondering if the lease will be HBP when we have not gotten paid anything.????

Permalink Reply by Skip Peel - Mineral Consultant on April 7, 2010 at 1:51

Some people do not know the difference between "good faith operations" and "production". A well must be spud before the lease term including any extensions expires but once the well is drilled it must produce or be "shut in" with accompanying shut in payments to "hold" the lease. "Good faith operations" can only hold a lease in force for a short period of time outside of the lease term but "production in paying quantities" will hold the lease indefinitely. "Production in paying quantities" does not refer to the royalty interests being paid. It is a term that defines the value of production as being greater than the cost to produce. In other words, whether the operator is producing the well at a loss in an attempt to maintain the lease.

Permalink Reply by Etola on April 6, 2010 at 16:41

Chesapeake (936) 598-2061
Paloma (936) 591-9216
Petrohawk landman called me yesterday and wants to lease in Huxley though nothing in my area available. He lives near Tyler, TX. (903) 316-2005

Permalink Reply by James Ross on April 14, 2010 at 1:54

Thanks for the contact info. I have some mineral rights east of FM 139, about 5 miles south of hwy 7, I was offered $500 an acre and 1/5 last year, but didn't sign. What is Petrohawk offering?

Permalink Reply by Etola on April 16, 2010 at 6:26

The landman I talked to didn't say how much they were paying. I got the impression he was new to the area and didn't really know what other companies were paying. Paloma paid my neighbor $3000 for 4 years 25% royalty about 2 months ago for land in Huxley. The area you are in should bring at least $2000 an acre. It might depend on how many mineral acres you have to lease. Chesapeake has 2 Haynesville wells permited just a little south of you. You might give them a call. They have acreage leased in that area too. With minerals unleased, I can't believe they are not worrying you to death. Who were you leased with before? Good luck!

Permalink Reply by James Ross on April 19, 2010 at 13:41

We have about 20 acres, it has never been leased. I will call Paloma and CHK, $2000 sounds a lot better than $500.

Permalink Reply by MARG on April 21, 2010 at 20:42

Hi Etola! How much further South was the $3000 from me? I have had two offers that are acceptable, but I had been going to get a GREAT lease and things went down waiting for my old lease to expire So I have been holding out. I have one pretty good offer, but three sounds better. Marg

Permalink Reply by Etola on April 22, 2010 at 17:34

Paloma leased 3 miles south of you. Give them a call. I don't know what they are currently offering. Get ready though they are going to offer a 4 year lease or a 3 year with a 1 year option or at least that's what they did a couple of months ago. Good luck!

• ‹ Previous
• 1
• 2
• 3
• 4
• Next ›
• Page