Replies to This Discussion

Permalink Reply by Endwise on November 1, 2010 at 8:42

BillyBob you signed that lease yet?

Permalink Reply by BillyBob on November 1, 2010 at 11:35

We talked today. I asked for more and he said he thought he could do it but had to talk to someone else first. I should know by end of the week according to him.

Permalink Reply by Endwise on November 2, 2010 at 9:41

I hope you don't settle for less than $ and 25%. Hope all goes well, if not, friend me.

Permalink Reply by BillyBob on November 5, 2010 at 2:13

We talked again and while I pushed for more, it seems 1500 with 25% may be the stopping point. I'm inclined to take it. ?????

Permalink Reply by adubu on November 5, 2010 at 6:24

BillyBob--25% royalty I would take it for your moneys in the ground and the only way to get it is for some one to drill it for you. If you get good terms the $1500 bonus not bad IMO. You might ask for $2500 and see what happens. This was my comment couple weeks ago to you. I recommend go ahead because if prices go any lower they will drop rigs and stop drilling for few years. EOG and CHK are doing just that now --get it leased --Don't be greedy. If they lay rigs down then leasing stops

Permalink Reply by Cary Jerome Marston Huff on October 14, 2010 at 14:55

That is low even for the Fayetteville Shale. Check with Petrohawk - they seemed to be the highest in leasing minerals, but don't lease with them. We get paid monthly, but Petrohawk skips a month every now and then. Go back to SWN and tell them you were offered this from Petrohawk, also don't allow them to put injection wells on your property. Limit lease to Black Carbons, Lease cannot be transferred to a third party, failure to pay mineral royalties after 45 days breaches contract, lease is for 1 year unless there is production in your sections, drilling cannot be done without a land lease, Well pads will be restored to original condition after well is drilled, Wellpad is for only wells specified in wellpad location lease, You will not be liable for anything, You will receive 5,000.00 every additional well plus wellpad location lease, noone is allowed to come on your property with a weapon, You have a right to inspect wellpad location, you have a right to confront and ask a person their business on your property, speed limit is to be no faster than 15 mph on your land, no water lines to cross your land without landowner's approval, and etc.. SWN is an honest player. Right now Petrohawk is in the midst of many lawsuits in the Fayetteville Shale for Contract Breaches. I haven't heard of a single Contract Breach from SWN in the past five years...

Permalink Reply by James Smith on October 14, 2010 at 20:30

Cary,
Have you ever found any company that would sign a lease with a no transfer clause in it?

Permalink Reply by Cactus on November 5, 2010 at 1:23

Has anyone heard what SWN is up to in the Rowe survey. They are drilling (419-31628) a well that is vertical only, to 12,850'. Is only on a 40 acre unit. Permitted for gas. Not your normal large tract with horizontal drilling.

Permalink Reply by jffree1 on November 5, 2010 at 2:17

Extreme southeast Shelby has not been explored at shale depths except for the Forest well on the lake. It is not unusual to see operators drill a few verticals before sinking $9-10 MM into a horizontal well. A vertical can always be amended to horizontal if the hole looks promising.

Permalink Reply by Cactus on November 5, 2010 at 2:23

Thanks jffree, that makes sense. Wonder if we will hear any results of this test? They've been drilling for 3-4 weeks.

Permalink Reply by jffree1 on November 5, 2010 at 2:32

I doubt they will make a big deal about it, whatever the results, but they will report it eventually. It could be several months, though, if/when they do complete the well.

Devon drilled a vertical and a directional east of San Augustine and both were shut-in the last time I looked.

Permalink Reply by Cactus on November 5, 2010 at 2:41

That's kind of what I was thinking. Thanks for your thoughts!

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