Replies to This Discussion

Permalink Reply by Rock Man on September 16, 2018 at 5:29

Building on the comments of this AM as to the issue in question.

As Skip will probably attest, some people will sign these apparent low ball leases while others will counter for better terms - that is just the nature of the "leasing machine" no matter where you are. This will be along process (leasing) with a lot of negotiation and back and forth communications.

Remember that the brokers (and operator) are wanting to lease for the lowest terms and lowest royalty possible - they are not there to give away present or future money (via royalties). But they will draw a line somewhere - they have a ceiling as to what is to be spent and their well economics are tied to this ceiling.

So it is a poker game.

One of the issues in play is knowledge (or lack there of). The broker / operator holds all the cards and knows everything while the individual landowners are in the dark.

Something to consider - via various communication effort, one can try to promote a "group meeting / town hall meeting" or at least a group discussion among the area landowners to share and pass along info as to lease offers and what is happening.

Of course, there will always be those who don't want to share info but this is worth a try.

Just my opinion on this whole issue from my perspective and history with leasing activities.

Permalink Reply by Skip Peel - Mineral Consultant on September 16, 2018 at 5:43

Since we are discussing the topic, OLIPHANT ENERGY AUS C UNIT, NORTH HADDENS FIELD, VERNON PARISH, and mixing in comments regarding Rapides Parish and the recent mineral auction bid tracts, I think we need to provide some clarification.  This Oliphant AC unit is along the border between Vernon and Sabine parishes very near the shoreline of Toledo Bend and is not near Rapides Parish.  If yo compare the township and range for the unit and the mineral tracts, it will be obvious that we are talking a distance of approximately 36 miles.

It is always helpful to avoid confusion and not inadvertently give someone a misleading or inaccurate opinion to stick to the topic of the discussion or to clearly state in a reply why information that is not proximal to the subject area may be of value or related.

Permalink Reply by Lisa Melder-Johnson on September 16, 2018 at 8:00

Understood! Oliphant North Haddens VP is in T3N R11W 17, 18, 19, 20, 29 & 30 sections.  But am I right that the Indigo well mentioned is in NE VP T4N R5W which is same area as RP McGinty-Durham leases just purchased on 9/12/18 from the State lease sale with same bonus & %.

Permalink Reply by Skip Peel - Mineral Consultant on September 16, 2018 at 8:02

What Indigo well?

Permalink Reply by Two Dogs, Pirate on September 16, 2018 at 8:49

Skip , this area where the state leases are located is sandwiched between 3 Indigo wells. The first was a vertical to core the TMS the second was a horizontal TMS well called the Bentley 34 that never did too much and the third was the last TMS well that was drilled on the western side of the play. Indigo and EOG teamed together on the last one, I think. It was P&A right off the bat. Indigo referred to the first two as the Louisiana Eagle Ford Formation and I think that they are maybe still producing a couple of barrels every now and then.

Permalink Reply by Skip Peel - Mineral Consultant on September 16, 2018 at 9:58

Thanks for the additional info, TD,P.  Yes, I recall the Louisiana Eagle Ford wells by Indigo and EOG.  There was an additional LEF exploratory well by another company on my family's hunting lease in far south Sabine not too far from the proposed Oliphant AC unit.

Permalink Reply by Rock Man on September 16, 2018 at 16:14

Jay, do you have details on the TOC, thermal info ,clay content, etc from that Indigo well? Would love to see that data if you do

Guess it is a "rock thing" for me! LOL

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