O.K. Newbie here so cut me some slack if I screw this up. I just noticed there's no discussion group for my parish and communication among our residents is sketchy and patchy at best because we are VERY new to the oil play, so we don't have any collective wisdom here. Any comments, insights, or even heresay welcome here. What I have to contribute is just information on lease rates and the areas they are concentrating in right now. (Averaging $150 for first three, varying for next two. From 1/6 to 1/5 royalties.) Devon is about a month into drilling it's first Tangipahoa well just a little north of me in Fluker, Louisiana. I have friends who are part of the unit but they are not hearing much of anything. Security at the site is TIGHT with our local sheriff's office maintaining 24 hour presence a couple of hundred yards from the rig itself. They ask you your business and write it all down. I think it's called a "tight hole" or something like that. They are also going to be buying all the pond water nearby. I don't know how much they are paying but will ask around.I have heard that our state is limiting the drilling of wells for water but I'm not sure of that. It was just hearsay from a friend. Well that's it for now.This is a great site. I've learned tons here. Amelia Resources has been a great help as well. Keep up the good work people.
Keith, this may just be a "girl thing" but it surely would be nice to have a "LIKE" button on here sometimes! :) Some of these remarks just hit the nail on the head and need to be praised by the "common folk" that are trying hard to grasp the mysterious oil and gas production lingo and procedures...just sayin'! All of you land gathering guys, computer geeks, and educated posters..I thank you for your service to us..it's getting a little easier to get the gist of what's happening in these piney woods because of you taking the time to "straighten us out" on our opinions and guesses.
Does anyone know if there is any interest in the Robert area?
I talked to a landman the other day who was temporarily in the area. We were talking about the shale play when he said something about Robert. I said something about that being pretty far south for the shale and he said it was going to be a conventional vertical well. Apparently, someone thinks there's a pool of oil down there somewhere so they'll probably just be leasing in specific areas. He didn't say where it would be but if you live in that area and a landman shows up at your door it's probably a good sign. I can't vouch for his credibility but he seemed pretty knowledgeable about what's going on in general.
There is a Tusc play developing across that area. This is according to one report that I got from one of my scouts in that area. He told me that there is a land owner in Northern Livingston Parish that is getting $70,000 a month in production money. That well was drilled by YUMA. Hope this is correct and there is an additional play developing.
Thank you. Is there any other info I can research to see where in the Robert area they are looking? I have 125 acres on hwy 445.
I really don't go that far to the East. I had someone call me this past week that told me he had personal contact with the person that was receiving the royalty. Maybe some one in the Robert area can respond.
Thanks. Is there a different site for the Robert area?
I think you are correct. Although the landman didn't specifically say so, I assume they are targeting the Tuscaloosa sands.
The wells you speak of in Livingston are indeed doing very well. They also are in the same sands. The geologist (or one of them) in charge of that Livingston field gave a speech recently and seemed pleased as punch about the whole deal. They did 3d seismic over many square miles after reviewing all the 2d stuff and it paid off big time. The land is mostly Weyerhauser timberland and a few individual landowners, and I think they are getting some nice money out of it, as you say.
Does anyone know what lease terms Omni Energy, Inc. (working on behalf of Devon) is currently offering to landowners in northern Tangipahoa and St. Helena Parishes?
I saw a contract the other day signed within the last 3 months wherein a landowner with less that 50 acres received $100 for 3 years and $150 for the additional 2. DJ Energy was the broker and I'm pretty sure they front for Devon. I think he could have done better since he's north Tangipahoa but the higher prices I've heard of heretofore were for the larger tracts, presumably where the legal costs would be lower per acre. I remember prices being that good and better when they first started leasing around here 2 or 3 years ago. I'm not sure exactly how that pricing structure works but that dud of a well in Fluker (Soterra) has to be helping. Maybe these lower lease prices will help make up for not getting the oil. The last I heard Devon had about 300,000 already leased and wanted about 200,000 more. Those savings could add up.
1/6 royalties on that contract.