San Augustine, TX

Lately I've heard of some people getting offers for $5,000/acre, but the companies are claiming that since it is unproven that they can't bump the price up anymore. Has anyone heard anything new? The Barnett is around $20-28 thou/acre for crossreferencing prices.

Before they get too interested in us, I believe they wanted to finish up leasing acres in Sabine Parish, LA in the sections they wanted to drill in - where they have the big bucks in bonus money and I think they completed those offers last Friday.

Well, well, well...San Augustine County has rated an oil & gas discussion board. I knew my Grandfather left us his legacy with the family farm! It's just a matter of time before this Haynesville play busts wide open here. There's too many approved drilling permits, proven gas wells nearby, & $5000 offers floating around for this not to be real. To answer O&G Landman's question, $5000/25% is the highest I've heard. Good luck to all!

Has anyone heard of a planned meeting to be held on the 23d of Septemberf in San Augustine? The speaker is supposed to have a discussion which will help educate mineral owners about some of the items to watch for when negotiating a lease with oil & gas companies.

Aparently a notice appeared in the Sabine county newspaper but not in the San Augustine Tribune. It seems to me this meeting needs to be promoted.

Haven't heard of a meeting but it could come out in this weeks edition. Will look for it. Thanks for the update.

ETL...That meeting is a mineral rights seminar by Judon Fambrough of Tx A & M real estate dept.
It is Sept. 23 in San Augustine at the Livestock Arena.
Dinner at 6:00 $15.00 per head
Seminar at 7:00 FREE

I think those times are correct. If I find out different I will post it.
This seminar is a repeat of the one held in Center in July and should be very informative to those who have never been through the lease process, those who want to know more about how the lease companies put together a well unit & how royalties are figured or for those who want to go through the process without blinders on (trusting that the good old landman would never give them a BAD LEASE to sign).
And it will help clarify lease terms that everyone in this play needs to know about so they don't get stuck (HBP) in a lease that gives away the farm, the cow AND all the milk.

Forgive me...I get excited.

Shalers, take EVERY opportunity to educate yourselves on the process that, hopefully, will put bonus money in your bank account and royalty checks in your mailbox.

This is one of those opportunites...

Somebody should post in the events on the main page.

I have mineral interests in San Augustine, Shelby, Nacogdoches, and other counties which I have inherited. I have been a landman for 27 years and counting and will help in any way I can. I can tell you it will be us against them at this point. Give me your feedback.

extremely recently I have heard of appraisers estimating $6,500/ acre in San Augustine county!!

My best thus far is $5K @ 1/4th, but I expect that to change after a couple of test wells have been completed which will be within a month or two.

Here's an update on the Sept. 23 Seminar...
According to John Toner, Sabine County Extension Service Agent, it will be at the San Augustine County Fairgrounds with Bar-B-Q from 5-6 PM and the seminar will be from 6 til 9 or 9:30 PM.
You should call John Toner (409-787-3752) or the San Augustine County Agent (I'm sorry, I don't have the name or phone # yet) to express your interest in attending (get on the list) and you will pay at the door.
Registration fee is $15.00 per person and will include the BBQ. Make checks payable to Sabine County 4H Horse Club.
It is also posted under "EVENTS" on the main page.

Best I have heard of in SA County is 5K @ 1/4. That was South of 103 a little ways and East of 705. Anyone have any idea how far South into SA County they think the play goes? I haven't even heard a rumor....

Things are pretty quiet, at the moment, in both San Augustine and Sabine Counties. I hear the O&Gs are working on well units and that they will not go knocking on doors or calling anyone unless they have land that is need to finish up a unit. They are trying to get the leases done so they can get well permits.
That is a good thing for us. We need good well data to stimulate more interest in these counties. This area is totally undeveloped as to Haynesville Shale and so they have set the lease bonus at 5-6K an acre. It won't increase without stimuli.
None of the O&Gs want to stick their necks out too far without being pretty certain that they will get the desired return on the huge expense of drilling a HS well. We just have to wait for that to happen, hope like H*** they get the desired results, and go on from there.

The Barnette Shale did not develope over night. It has taken years of drilling for them to determine where the sweet spots are, what the boundaries are and so on. The lease offers have not always been as high as they are now. They increased as the Play matured and people became aware of what they had under their land.
Just like the Barnette, this play will take time to develope. Nothing is known for sure about the southern or western boundaries. It may take Shelby, Panola and Rusk counties growing to a saturation point in the drilling for the O&GS to move out into the more questionable areas of the play.
That is also a good thing for us. As the boundaries expand so will the bonus offers. Just be patient and keep an eye on those well reports when they start coming out.

You are probably right jffree. Chesapeake called me and told me our land was not in their area of interest right now but may be later. We are just a little south of 103 off fm 705.

Iknow, I know...that's all I've heard for two months now, from every one. And it is maddening to think about NOT getting leased right away. I have to remind myself to be happy for the folks who are getting a lease early on. And I try to keep in mind that the bonus money may get much better from here on out....We need that well data!

Hey Guys I do legal work for an independent in the Barnett Shale and currently am working on a unit which was leased back in 2006. At that time we leased at $2000/acre. Now they want $25K plus, so you do the math. Time is money as far as we should all be concerned. They are not drilling 16,000 test wells so they can fail. Be patient. Jffree good call...

Lessor, Your input is appreciated. I had a conversation with a lady who has been talking to every leasing outfit in San Augustine and Sabine Counties since late June and she was puzzled about why Devon came in here (Hemphill) like gang busters offering 5K an acre when folks were lining up to lease at 1500.00...and of course she was pleased that they did.
My notion is that they wanted to blow all the flippers and little guys out of the water, get their areas of interest leased up in a short time and get a well or two permitted, without having to jockey back and forth for position amongst all the lower offers (which is extremely time consuming).
Coming in with top dollar (at that time) put all the LOs on their call sheets so they could just pick out what they want AND set the bonus standard, for the short term.
At last tally, there are just four majors in Hemphill:
Devon, Crimson, EOG and Eagle. As far as I know Devon is still the only one making initial offers of 5K.
I have heard that PH, Encanna and Cabot are in SA county. I know for sure that Cabot picked up some leases in Sa Co. from PXP (My cousin got an option letter from them)...
Do you know who else is in San Augustine?

Lessor, I appreciate your input as well. The O&G companies haven't gone anywhere. They are still around. I did notice a couple of wells permitted to 16,000 ft in San Augustine county. One on the north end of the county and one on the southern end of the county. These may tell the tale for San Augustine.

FYI.....I heard word of mouth that Penn Virginia O&G was in SA offering $7500 p/acre. Not true, I contacted their Houston office & they have no interest at this time in SA county, only Harrison & a few others where they already have a position.

Hey guys, thanks for the kind words. You are appreciated as well, as I am not there to see what is going on, on the ground. These test wells will tell the tale shortly. It will go either way in due time as these things go through their initial production tests. Pray, cross your fingers, your eyes and your legs! If I hear anything else I will holler.

Lessor, after a well is completed how long does it normally take to start getting data on the RR comm. website? I am watching two wells and one has had the rig removed but still no data posted. The rig hands say it's a 'good well'.

Hey intrepid, where are the wells located? Are they in SA County?

They are just across the line in Shelby county. Cabot is developing the James Lime in their County Line Field located on the Shelby-SA county line and the wells I am interested in are two Devon wells just north of there.

Intrepid,
[1] Do you know a landman and phone number for Cabot in Shelby or SA county.
[2] Do you know the names and locations of the two Devon wells north of the Shelby and SA county lines

Anyone know anything about Elite Landworks Association in San Augustine. Just received a paid up oil & gas lease with a draft for $500 per acres. This seems kind of low to me from what I am reading here. I live in Louisiana this is part of E. P. Richiee, A-238. D

Don't know anything about Elite Landworks.

Anyone know how far west in San Augustine County leases have been made?

Cabot Oil and Gas, leasing agent Coleman & Coleman - John Coleman 936-275-9700.
Good company.

JWC,
Our lease hasn't been made but one of our properties is less than a mile from Nacogdoches County & we're getting offers. Our neighbors to the west that border the county line are too.

Thanks farmbrad. That's good to hear.

Anyone had any dealings with Devon? Not been offered yet but was wondering how they are to deal with?

Devon was offering us & our neighbors $5K/25% for a 3yr deal in west SA county north of Hwy103. We're supposed to be on a waiting list but it looks as though we're going to sign with Encana soon. Devon's SA landman is a guy I went to school with. IMO, I trust him to lead you through the leasing process without any hidden agendas. You need to ask the right questions & he will give you honest answers. I was able to read the royalty addendum they're offering & the first sentence references "cost free" but it isn't. Further into the paragraph it states a deduction of "the actual, reasonable costs incurred by lessee to transport, compress, process, stabilize or treat the production off the lease premises in order to make the production saleable, increase its value, or get the production to a market". That's not a cost free royalty. Encana offers the same 25% royalty with the option of accepting a "cost free" royalty of 22%. Bottom line....Devon's a good company to deal with, just make sure all aspects of what's important to you are specified in the contract. Good luck!

Thanks for that information farmbrad. I believe Encana and Devon are in our area as well. This is good to know.

We have about 30 acres just south of 103 near 96. Anyone know what kind of action that area is getting? Thanks for any input.

I believe Devon and Encana may be leasing in that area. I hear $5k/25% seems to be the going rate.

Thanks JWC. Good to know.

What's going on in SA County? What companies are still there?

I've got my land leased out now, but I'm confused about the James Lime vs. the Haynesville Shale. The drilling reports all say "production is in the James" and nothing is ever mentioned about Haynesville in san Augustine County. The company that leased my land said they are just going after James Lime natural gas and that they arent sure there's Haynesville Shale at all under San Augustine County. So they leased cheap compared to what I'm reading here. They haven't started drilling anything yet either. Is anybody sure at all if we're ontop of this shale? Seems like we're a good ways away from Shreveport to be included in that, but I am no expert. The oil and gas guys I've talked to say that James Lime is a decent low risk producer so they don't care much about Haynesville. Wondering what other folks are hearing? Thanks for your input. Bill

Bill where is your land?

Bill,
In 2008, we got 6 or so wells permitted in SA county to depths of 14-16000' which is where the Haynesville should be. In talking with Devon about a lease, I was told that the interest in our land was for Haynesville. We're signing Friday with Encana for 5K/22% cost free/3yrs. They wouldn't allow a pugh clause which leads me to believe they may have both James Lime &/or Haynesville in mind. To cover non-pooled land from being HBP, we did get a pooling clause that guarantees 100% of land pooled in a unit or none at all.

Do you guys think there could be Haynesville / James Lime aroun Highway 103/ intersecting 147? Eagle Gas and Oil has been looking on our family's property for a month now and no word...