Carl Goetting

Carl,

Your lease is very close to what they are looking for with mine geographically. The landman has representated to me that Winchester, across the Texas line, will not pay more than $150.00/acre and a 1/5th royalty. Just across the state line, my cousin has a lease agreement with Winchester for a 1/4 royalty in the H-Shale.

We are holding out for a larger lease bonus and the 1/4 royalty. Would you mind sharing with me what Winchester settled with you. If you would prefer, you can e-mail me back with the answer at teddford@gmail.com if you are more comfortable with that.

Thanks

Thanks, Carl. Keep me informed as to what is happening. I'd appreciate it. Like I said before, patience is probably called for. I think as this thing expands, our property will get more valuable to the o/g people. We are so close to the Caddo Parish areas that have a lot of rigs and, from the record of leases (go to this site to see leases people have submitted to share info: http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_min_leas_tract1.....just submit query as blank and it will bring the info up), Caddo seems to be getting $25,000-30,000/acre. Rather unbelievable. As this plays out and they define the Haynesville Shale area (may take a while), I believe, we, who now on the fringe, will see the benefits of waiting.

The property I have is in the Smithland area, little NE of there. I also have some on the west side. No interest on either yet.

Thanks Carl.

Carl, I have been out of town a few days, was wondering if anything new was happening in Marion county? Thanks, Byron

Byron, not too much to report, but will highlight what may be of interest and what I know.

1) Leasing activity is still going strong along Marion County/Harrison County near Karnack. That is what is left to lease.Looks like lease interest is trending Northwest.
2) Further West from Jefferson south to Harrison County this area is getting a lot of attention from Devon and Penn Virginia and now EOG
3) Had a OGC trying to lease on the cheap property north of Sarber. If sounded more like a broker.
4) Interest in my Smithland Field property has dropped off. Two reasons in my opinon, too much acreage in the area is held by production, and the instructions from the OGC to go elsewhere in Marion County
5) No new drilling permits issued lately in Marion County.
6) I have had some good conversations with a couple of good land men, and they tell me (at least these guys) that they are told to avoid small HBP stripper well property for now.

7) Finally lease bonus amounts in some acreage is going at $1,500 acre with 25%. Still inexpensive by Louisiana and Harrison county accounts.

Good Luck

Carl, Thanks for the info. I will let you know if I hear anything new. Byron