Replies to This Discussion

Permalink Reply by W. Carter Richardson on November 13, 2009 at 3:08

any news on latest lease amounts for South Caddo?

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Permalink Reply by JHH on November 13, 2009 at 4:56

Help me understand these numbers...:) $2.6 million dollars for 100 acres would come down to $26,000 an acre. The article states 19,000 acres and 1,300 acres and a coulpe leases in Caddo/Red River Parishes. Did the state give some of the acres away? I doubt it. Maybe the reporter can help clarify this. Seems the total $$$ wrong by a few decimal points? thanks, jhh

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Permalink Reply by E & E on November 13, 2009 at 5:23

Tract 41190
CADDO, RED RIVER 26, 27, 28, 33, 34, 35 T15N R12W
Acres 87.560

Had 4 bids total:
MATADOR RESOURCES COMPANY $20,614.00
THEOPHILUS OIL, GAS & LAND SERVICES, LLC $16,007.00
CLASSIC PETROLEUM, INC. $14,239.00
Winning bid:
MATADOR RESOURCES COMPANY $26,000.00 (Yes, 2 different bids by Matador)

Please keep in mind that this is for the first year of the lease. After that it will be 1/2 of of the bid Rental.

Therefore for a 3 year lease it will breakdown this way:
$26,000.00 first year plus $12,000.00 second year plus $12,000.00 third year which equals $32,000.00 for a 3 year lease.

Here's the link:
The pull down tab should be set for 11/12/2009.
http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_min_leas_tract1
Leave the box blank and just hit "Submit Query"

Earlene

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Permalink Reply by Skip Peel - Mineral Consultant on November 13, 2009 at 5:38

The state mineral auctions conducted in 2008 had a number of instances where bids with higher bonuses were accepted over bids with higher royalties. I recall bids with royalties up to 30% that were rejected in favor of those with lower royalties and higher bonuses.

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Permalink Reply by The_Baron on November 13, 2009 at 6:36

me too, but I don't have a 500 million shortfall this year either.

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Permalink Reply by Bacon on November 13, 2009 at 8:50

So do you guys think this would impact rates for private LO's? The $15k the others bid is still pretty high. Do the companies think that there is more down there than what has been established?

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Permalink Reply by E & E on November 13, 2009 at 11:42

Have to edit my bad math.

$26,000.00 + $13,000.00 + $13,000.00 = $52,000.00

Oh well it was a rough morning.......

Earlene

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Permalink Reply by Cheerleader on November 13, 2009 at 19:09

E & E
Is this correct??
87.560 acres in Cado, Red River
$26,000.00 per 1 acre= $2,276,560.00 Bonus
$1,138,280.00 Second year "Delayed Rental"
$1,138,280.00 Third year "Delayed Rental"
Is the "Delayed Rental" mandated by law for state and/or parish leases???
Are the individual/private mineral rights owners in LA requesting "Delayed Rental"???

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Permalink Reply by E & E on November 14, 2009 at 4:54

Good Morn Cheerleader,
I couldn't help myself, but to get tickled @ you asking me about math after I had done such a bad job in my first post. But with calculator in hand and using the DNR site as backup, you have your math correct. The Delayed Rental is in the lease that is drawn up by the Mineral Board. As to if it is law, I haven't searched for it. But it is their standard. I would bet that there were some mineral owners that included a delayed rental in their leases, but I would also say that it would be rare. There are "creative" leases all over the place. I have said this b4 on ghs, if you want a donut delivered to you everyday that they are drilling then put it in your lease. Everything is negotiable. It comes down to what is important to the individual.
Earlene

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Permalink Reply by Cheerleader on November 14, 2009 at 16:51

Thanks Earlene.
I wasn't trying to correct your math...just trying to understand the process. I have been wondering about "delayed rental" and now you have answered my questions.
Do you think individuals have not included "delayed rental" because they aren't familar with it, opposed to having the OGs refuse to include it in the lease? Also, I would think minimum royalty would be a common element in the lease.
The crispy cream donut is a great idea!!!!!

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