Hey herfordsnshale- how you doing? have not heard from you in a long time.

Hey thanks for watching, today Sat. JRv and I drove down the dirt road where someone keeps trashing Catfish and they are blowing holes on the road? the survey equiptment is parked between Pierce Rd and where the dirt road comes out by the church. I didn't know they could survey on a county road. hmmmm?
JRV and I will be out with out Teryx Sun morning to ride our trails on the property. If you see us (White pickup King ranch and flatbed give us a shout. Thanks.LLV

Okay, Heresfordsnshale, got the map out and looked us both up! You got flags on your side of the road too. If you live out there you need to be our eyes. Sure want them to put a hole out there next to number 104. We will be out thee tomorrow riding the trails, if you see us out there give us a wave! Identify......thanks for reply. LV

Our family leased to Cheasapeake and are hoping they will be the ones in there. We are in Section 24 T11N R16W, our family property runs down powerline/across pierce Rd and to and across day RD, down Pierce Road and to leaseback on the East side. Where are you in regards to the Trinidad #104 Well. Hope we all get drilled . Have you seen any survey trucks on site yet. Call if you do....we want to be on hand if possibe.

J & L

The Order is on Sonris (go to Documents).

Despite all the efforts of most of the decent, sincere people in Section 20 pointing out that it is simply not FAIR to the mineral owners of that section to decrease their revenue stream by putting 29 in with 20, and that there IS ample acreage in 29 for a well site, the Commish did exactly that "on the spot".

No one HAS YET been able to come up with an explanation of just how the well in the S/E corner of 20 is going to " . . . economically and efficiently . . . " drain gas in 29 when THE LATERAL GOES DIRECTLY NORTH AWAY FROM 29 !

Good ole Louisiana politics ! "Dem dat gots the gold -- makes de rules !"

In short -- the fix was in befort the sun came up on the Hearing day !!

Hereford----wayne a gadman, who owns 120 acres in sec 29 told me he was told by Onebane law firm that it was granted. He has not officially received notice yet. The drilling rig is in place and has begun the drill.

hereford---I will be checking to see what I can find out about combining sec 20 and 29. I cannot confirm that they did. Boy, rig 104 is loud isn't it. I can hear it all the time outside.

Hey,

You and your wife need to join us for some bowling.

My email to your wildblue.net address did not go through. Please contact me on my personal email: skippeel@gmail.com or call me at 318-861-3633, at your convenience. Regards, Skip

Yea I googled it then posted the change. Those movies were a long time ago.

If you sold a half interest. That would be 25 net mineral acres. And your total, 50, would be the gross acreage. The term net is used as you would actually be selling (conveying) a 50% undivided interest in each of the 50 acres. If you were selling a 100% interest, it would be 50 net mineral acres. The quoted price is not only based on the tract being under leased, but on which company you are leased to and the prospect that the eventual operator of a unit in your section would be Chesapeake or Petrohawk. Both of which are equally favored by investors. Unleased mineral acres in prospective areas are more valuable as a general rule of thumb. An investor granted executive rights would be the legal party to negotiate a lease and share in the bonus. And would therefore place a higher value on the minerals. The investor granted executive rights as part of a purchase of a tract under a lease would also be the party empowered to negotiate a top lease or a new lease in the future if the existing lease expires. The only down side historically to waiting for an existing lease to expire before selling a mineral interest in whole or part would be poor performing or unproductive wells being drilled in the vicinity of your tract. This will occur from time to time along the periphery of the HS play boundaries with the disappointing initial wells in north Caddo Parish being the first such example.

$5,625 to $6,000 per net mineral acre at current valuations.

I'll give you an estimate off the top of my head. Here are the basics I need to know. Location? Size of mineral estate? Do you currently own the surface? What operator holds the lease and what is the royalty? What is the initial term of the lease and does it contain provisions for extensions? There's actually a lot more to analyzing a lease but it gets kind of complicated. I can give you a pretty good ballpark number from these basic questions.

Investors rarely purchase a fractional mineral interest less than 50%. In order to exercise executive rights, they must have that as a minimum ownership interest along with a purchase agreement clause granting them those executive rights. Less than 50% does not convey those rights. Any percentage over 50% does so without the need for the clause. I offer a purchase option for a limited period of time. 30 to 90 days depending on the size and complexity of the mineral estate. The option states a purchase amount and can be executed by any third party investor that I assign it to. The investor pays me a small commission based on that purchase price. There is no cost to the seller. The option period allows an interested investor to perform their own due diligence as to merchantable title. They will have their landman do a separate and more comprehensive title review than the one that I conduct. Payment is by wire transfer, money order or cashier's check at the sellers prerogative.

Hello, herefordsnshale. Yes. In general the valuations discussed are in the ballpark. As in most things related to the HS play, there are no accurate hard and fast rules. Each situation is different. A major portion of my business is representing mineral owners who wish to sell all or a portion of their mineral interests. The investors that purchase those mineral interests prefer to purchase mineral servitudes. As opposed to royalty. The reason is that they wish to exercise "executive rights". And the investors that I place my options with are savvy veterans who know how to maximize their investments through the use of those executive rights. As a general assessment, I consider it a very astute move for mineral owners to sell a 50% stake in their minerals to experienced investors. They lock in a guaranteed payday from minerals that are impossible to estimate the future value of and at the same time gain free, professional management of their minerals going forward. The investor will bring the benefit of experienced legal counsel, geologist and landman resources to the partnership. And the mineral owner will benefit accordingly at no cost to themselves. I consider that a win - win. And the long term capital gains paid on the sale of minerals owned over 2 years is 15%. Beating the heck out of what many are paying on their lease bonus payments. I

Thanks. Good luck.

Me, too!

Sec 20, T11, R15

You got it C. E.