Replies to This Discussion

Permalink Reply by Henry on December 10, 2009 at 8:13

Sounds low to me. There is a lot of activity in this area. El Paso has hit some big wells in 13N-15W and Comstock has some really good ones in 13N-16W. This is a pretty good area, and the offer sounds way too low.

Permalink Reply by William on December 10, 2009 at 10:08

I would say this is at lease $2,500 per acre too low. There is plenty of activity in the area.

Permalink Reply by Skip Peel - Mineral Consultant on December 10, 2009 at 10:11

Section 6 is an El Paso unit. What company is making the offer and what is the approximate size of the unleased tract?

Permalink Reply by KatOnTheRun on December 11, 2009 at 4:27

A land brokerage firm representing Chesapeake submitted the offer and, it covers 209 gross/13.33 net mineral acres in Sec 6. They did not indicate where in Sec 6. And, thanks to everyone with their replies!!

Permalink Reply by RBH on December 11, 2009 at 4:30

Heard from an attorney representing several clients that Chesapeake offers $6000-$10,000 per acre in same area

Permalink Reply by KatOnTheRun on December 11, 2009 at 6:17

It's described as the NW/4 and part of the N end of the SW/4

Permalink Reply by shelby on December 12, 2009 at 6:37

Skip,
On another note, do you know what company is the operator for Sec 11 T-11 R-16. Still have 14 acres unleased in that tract, and am thinking about putting it out there to a few companies to see what kind of deals are out there now. Any suggestions?
Thanks,
Shelby

Permalink Reply by Skip Peel - Mineral Consultant on December 12, 2009 at 8:25

Yeah, I do have a suggestion, don't. There is no operator for S11 as yet as no application for HA unit status has been filed. Section 1 is the only section under unit order and though I don't have a map in front of me at the moment, I recall only the extreme northeast sections are in LA. Sections 1,2,3,11,13. Your best course is to sit tight, monitor units and wells and decide what you want in the way of lease clauses. EOG has applied for the HA unit designation in Section1 and has a number of units just to the north in the southeast of 12N - 16W. Comstock also has units in the southern part of the township (28,29) Chesapeake is active to your east. A competition between two or more would be a good scenario. I never suggest that unleased landowners approach any company until there is a unit formed and a well permitted in their section.

Permalink Reply by kittycatmama on December 12, 2009 at 13:35

Speaking of T13 R 15 (Desoto), we have acreage there in Sec. 1 with 50% of minerals alnd HBP to a 1965 lease at 1/8. Skip, any info on that area

Permalink Reply by Skip Peel - Mineral Consultant on December 12, 2009 at 13:59

Section 1 has no HA unit order or application. As it is located in the far northeast of the township, we should look at 12N - 15W and 13N - 14W. In 12N - 15W. BP America has HA unit status to the immediate north (section 36). In 13N - 14W, Section 6 has no unit order. The closest, Section 5, has a unit order to El Paso. This is a common circumstance as the operator holding the existing lease held in force through production (HBP) has no compelling reason to drill a HA depth well. They will likely wait until approached by a larger shale player with a reason to acquire the section.

Permalink Reply by shelby on December 14, 2009 at 4:40

Skip,
Thanks for the insights. We are already leased with CHK in T-11 R-15; took it on the chin (putting it nicely) during last Octobers crash. Will try to hold out on this last parcel till things start turning around. We are in Sec 17 in T-11, and it looks like things might get going there before long, but, yet not aware of any permit requests.
Thanks for being part of this site, and your advice is always appreciated.
Shelby

Permalink Reply by J B Nabors on December 14, 2009 at 6:09

The 1/4 is good. And you can ask for higher royalty APO. But the bonus is way too low. It should be at least three times that much--did you see the current leases article from December 11?

" Per-acre lease bonuses took a huge leap this week at the state Mineral Board sale with acreage in the Haynesville Shale region in Desoto Parish commanding more than $18,500.00 an acre. The biggest recipient in north Louisiana was the DeSoto Parish School board, which will receive $6.1 million overall. The largest check will be for $3.4 million for scattered acreage around Mansfield. Classic Petroleum was the high bidder at $18,537.00 for 185.6 acres. The Board sold leases in 14 parishes, of the 15 north Louisiana leases 14 were in the Haynesville area, with 23 leases in southern parishes. "

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