Replies to This Discussion

Permalink Reply by North LA on April 21, 2011 at 13:57

Kathy,

 

DO NOT SELL YOUR MINERALS! LEASE THEM! Sorry for the all caps but it's very important that you know the difference between selling and leasing. I have land close to Lillie, LA and the best offer to lease so far has been $300/acre 20% 4/4. There have been 3-4 wells drilled around Marion over the last few years checking out the brown dense. None of the data have been released so we can only speculate on what they found. From the amount of leasing they are doing I would say they like what they see. Good luck and keep us informed.

Permalink Reply by Skip Peel - Mineral Consultant on April 25, 2011 at 5:22

North LA, please post the well name, operator and s-t-r or the Serial Numbers for the 3-4 wells you mention so that those of us tracking the Brown Dense can update our data.  Thanks.

Permalink Reply by Kathy King on May 27, 2011 at 10:22

Thanks North LA, I have had a similar offer of $300/acre 20% with a 4/3.  That seems clear enough but they want to stipulate that they will offer $300 for the 3 year extension.  Should that be stated now or somehow tied to the going rate at the time the extension is leased?  I still don't understand pooling, communicating zones, unitized lands, post production costs, "arm length transactions" etc. I think I need an oil and gas dictionary to understand the wording. Is pooling a good thing? It seems that it would be better to lease land that is in different sections in different leases.  Or is it better to just lump all acreage into one big lease for some reason? Apparently, they have the right to build roads, bridges, tanks, power stations, cellular facilities, and even employee houses within the lease.  Honestly, I think I need to scratch most of this.  I'm trying to grow timber.  I need to protect the water quality for the people who live in the area and the land so trees will still grow. Isn't salt water a by product of oil and gas wells? Are pipelines buried deep enough to plant over? How can you be sure the ground water will not be contaminated? I doubt that anyone will have the time to answer all my questions. Am I even worrying about the right things?

Permalink Reply by Mary Alison Anders Knighton on May 28, 2011 at 18:28

I totally agree with North LA's advice.  I have family land in Union Parish as well.  Hang tight.

Permalink Reply by robert edwards on May 31, 2011 at 16:57

i have heard rumors of fairly deep wells, but no proof or wheather they were successful or not.

Permalink Reply by Skip Peel - Mineral Consultant on June 1, 2011 at 1:22

There have been two wells drilled so far that appear to have tested the Lower Smackover/Brown Dense and both were not economic.

Permalink Reply by robert edwards on June 3, 2011 at 16:57

is this public info or just  an opinion.  where does your info come from.

Permalink Reply by Skip Peel - Mineral Consultant on June 4, 2011 at 5:34

robert, the information comes from the Arkansas Oil & Gas Commission. And has been posted and discussed by multiple members in several discussion threads on this site.  If you will look back through the archives, you can review all of those discussions.

Permalink Reply by robert edwards on June 4, 2011 at 12:37

i am new here.  thank you for the info.