Replies to This Discussion

Permalink Reply by Russell Allen on June 3, 2014 at 14:39

I own some land in St Helena Parish west of Kentwood, just across the Parish line (about 1/2 mile south of LA 38 across the highway from Bethel Baptist Church).  I recently received an offer to buy my mineral rights for $1000 an acre.  My cousin, who owns land very close to mine, received an offer of $275 an acre to lease it for a three year lease.  I hope this helps.  We need to stick together and compare offers to make sure we are getting the best deal possible.

Permalink Reply by steve pigott on July 22, 2014 at 7:30

 I spoke to a gentleman on july15 th close to wilmer he said he was offered 800.00 per acre with 20 % royalty.He had over 200 acres

Permalink Reply by Skip Peel - Mineral Consultant on July 22, 2014 at 7:37

Steve, did the gentleman mention the company making the offer?  The $800 seems a decent increase in bonus but the royalty is low.  It is a tremendous help to those who are unleased to know the location of the minerals (section-township-range, if possible) and the company behind the offers (the actual operator).  I am noticing some areas of competition for leases and that will be the driver of better terms for LA mineral owners.

Permalink Reply by steve pigott on July 22, 2014 at 7:48

I will try to find out but I think it was something like appollo or polimar if I still have his number I will call him back he was south of town of tangipahoa in that area. His land  is 2 miles south of Tangipahoa on Gill road and the leasing company was paloma they have amite address.

Permalink Reply by Skip Peel - Mineral Consultant on July 22, 2014 at 7:52

Paloma Resources is probably the company to which he was referring.  Paloma has registered as an operator with the state but has not as yet formed any drilling units or permitted any wells.  There are other companies actively leasing in north Tangi and the s-t-r would be helpful if you can get it.

Permalink Reply by Danny on July 22, 2014 at 8:08

Paloma has leased for $1000 per acre with 20% royalties in the lower west side of the T2. I have known alot of people to lease and Paloma by far has been making the best offers. That may show that they are looking to drill and maybe soon. 1/4 - 25% royalties seem to be far and few. But id deinetly opt for $1000 an acre with 20%.

Permalink Reply by steve pigott on July 22, 2014 at 8:27

Looks like it is T2S R6E or maybe R7E

Permalink Reply by Skip Peel - Mineral Consultant on July 22, 2014 at 8:39

See if you can find out the section and confirm the township.  Depending on location those receiving offers from Paloma may wish to solicit other offers.  If there are other energy companies interested in that area I suspect that a better royalty is possible.  The $1000/acre bonus is a good one but then again bonus is the least important term in an O&G lease.

Permalink Reply by Rock Man on July 22, 2014 at 8:46

Barging into a "proven" area and then flipping for big $$$ is what Paloma did in the Eagle Ford core area (Karnes Co et al) as well as either Utica or Marcellus

Permalink Reply by Danny on July 22, 2014 at 8:47

In those Township range there is not many un leased land. a lot of people in those areas already have leases when they were offered $250. The Waller/Rimes/Rohlfing area land was and area LSU was extremely interesed in years back. I know Goodrich couldnt touch what Paloma was offering. They were 1/2 thw price and 1/4 royalty wasnt even an option.

Flip it or not its what the terms are of the lease that matter. There website says they are looking to drill. They did flip but they also drilled very succesfully.

Permalink Reply by Skip Peel - Mineral Consultant on July 22, 2014 at 8:51

Goodrich is not the only company interested in that general area.  And Goodrich is hard pressed to compete with rising lease offers owing to the need to expend their capital drilling wells and locking up long term development rights.

Permalink Reply by Danny on July 22, 2014 at 9:26

My friend has 400 acres un leased in this area. He has been contacted by Goodrich, TexReExploration, Paloma, all have the same royalty offer of 1/5. None are over $550.00 per acre except for Paloma. Does anyone know of any other companies in the area that i havent listed.

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