Replies to This Discussion

Permalink Reply by judy hastedt on February 1, 2010 at 12:52

OOOOO KKKKKK. That's probably the way to go. Thank you. Judy

Permalink Reply by judy hastedt on February 1, 2010 at 12:49

1. do you know the language in the "favored nation" clause? people in texas get away with using it. 2. does depth need to be addressed in a lease? judy

Permalink Reply by judy hastedt on February 1, 2010 at 12:57

i heard they were going they were going back and upping the 5yr with 3/16th to $175/acre bonus. just fyi. judy

Permalink Reply by John D Cook on February 1, 2010 at 13:52

Rumor from lease man is they will need a derrick capable of 15500ft. You only need one capable of 12500ft for the Smackover. Something to think about. Rig capable of the 15500 depth is still hard to get on the books even with the low energy prices. Stick with the 3 year lease if possible. Nearly all drilling in this defined area will be wildcats.

Permalink Reply by Gayle Witherspoon on February 2, 2010 at 9:12

I had a lease offer last summer for 125 an acre a 1/5th royalty and I thought that was way too cheap, then the company walked away. Make sure that you don't get too greedy. I think sometimes we get to caught up in what happened in the Shreveport area.

Permalink Reply by Skip Peel - Mineral Consultant on February 2, 2010 at 9:41

Lessees grant Favored Nations lease clauses to a small fraction of 1% of lessors. Those with very large mineral estates. As much as I would like to be of more help, I am unfamiliar with the specifics of development activity in Union Parish. I do think that the evidence is overwhelming that there is no producible Haynesville Shale in Union Parish. So the questions becomes what is a lessee hoping to produce (Smackover, for example) and what is that worth? A vertical Push clause should be a part of all leases.

Permalink Reply by judy hastedt on February 2, 2010 at 12:27

This is a major help, thanks. The lessees are saying they are leasing for Smackover Greystone, (sp?). Will look into that vertical Push clause. If I could just get a shorter than 5 year lease, I'd be tickled with the offer for $175/acre and 3/16. Judy

Permalink Reply by judy hastedt on February 2, 2010 at 12:27

Thank you very much. We may go on and sign something pretty soon. I am scared of them walking away, too. Good luck, maybe they'll be back. That 1/5 sounds really fine. Judy

Permalink Reply by G-Dawg on February 2, 2010 at 14:55

There is an online map which shows township, range and section anywhere in LA if you are interested.

Too, if you have not used Sonris before, you should check it out. It will show all wells that were ever drilled in Union Parish. You can then take the coordinates from Sonris and paste them into Google map and see the exact location of the well site.

Too, you should post some of your questions on the main boards as there are many folks on it that can help answer them.

Permalink Reply by Gayle Witherspoon on February 3, 2010 at 1:44

I agree with you about a shorter time period, maybe offer them to lease for three years, but give them an option to extend it for 2 more years for the same amount of money. I have heard of several people doing this in North Louisiana and South Arkansas. It sure sounds like the same Smackover Brown Dense play that was very hot last summer. That is what they were leasing us for, but then EOG, under the name Border Exploration, drilled a dry hole in the Brown Dense formation in Lafayette County Arkansas. That is why they stopped leasing with us. Perhaps they have discovered more information that will make them want to drill a well in Union Parish. I have also heard that they are leasing in Columbia County and Union County Arkansas as well as Claiborne Parish. Let's hope! I think that it is also important to find out who the leasing company is REALLY working for.

Permalink Reply by judy hastedt on March 4, 2010 at 6:00

my guess is exxon or chesapeake. judy

Permalink Reply by Pat Patrick on March 28, 2010 at 9:42

Just heard about lease Bernice-Shiloh area
$175 acre 3/16 and 5 years
We did better than that 25-30 years ago and no one had heard of the Hayneville shale.
Hang on! It is moving that way!

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