First Check for Desoto Parrish - $576,426.79
This has probably already been around.
Article by Vickie Welborn, The Times (Shreveport)
vwelborn@gannett.com • December 24, 2009
MANSFIELD — Santa Claus came in the form of a check to the DeSoto Police Jury on Wednesday when the first royalty payment from Petrohawk Energy Corp. arrived in the mail.
The check for $576,426.79 is in line with what parish officials were expecting. They've done estimations in recent weeks while preparing for next year's budget. More than $5 million in anticipated royalty payments are figured into the $60 million budget that will be voted on in January.
The royalty check, calculated at 27.5 percent of production, was generated by three natural gas wells on sections in which the Police Jury owns land in and around the parish airport.
Production and prices vary per well. For example, sales at $3.45 per cubic feet were noted in October only at the DeSoto Parish Police Jury 26H1 well. Three months of production at prices ranging from $3.18 to $3.45 were listed for the DeSoto Parish Police Jury 35H1 well, which so far appears to have been the biggest producer in September and October at more than $107,000 each month.
A third well called Meredith 36H1, located on private property but in a section shared by the Police Jury, had two months of sales.
Police Jury officials are still awaiting results of a land survey so they will know how much of the money to split between the general and airport funds. Since 400 or so acres of the 1,045 that was leased are considered airport property, the Police Jury must put a like percentage in a separate airport fund that is dedicated to airport operations and improvements.
The Police Jury owns 160 acres each in sections 25 and 26, 350 acres in section 35 and 375 acres in section 36.
Article by Vickie Welborn, The Times (Shreveport)
vwelborn@gannett.com • December 24, 2009
MANSFIELD — Santa Claus came in the form of a check to the DeSoto Police Jury on Wednesday when the first royalty payment from Petrohawk Energy Corp. arrived in the mail.
The check for $576,426.79 is in line with what parish officials were expecting. They've done estimations in recent weeks while preparing for next year's budget. More than $5 million in anticipated royalty payments are figured into the $60 million budget that will be voted on in January.
The royalty check, calculated at 27.5 percent of production, was generated by three natural gas wells on sections in which the Police Jury owns land in and around the parish airport.
Production and prices vary per well. For example, sales at $3.45 per cubic feet were noted in October only at the DeSoto Parish Police Jury 26H1 well. Three months of production at prices ranging from $3.18 to $3.45 were listed for the DeSoto Parish Police Jury 35H1 well, which so far appears to have been the biggest producer in September and October at more than $107,000 each month.
A third well called Meredith 36H1, located on private property but in a section shared by the Police Jury, had two months of sales.
Police Jury officials are still awaiting results of a land survey so they will know how much of the money to split between the general and airport funds. Since 400 or so acres of the 1,045 that was leased are considered airport property, the Police Jury must put a like percentage in a separate airport fund that is dedicated to airport operations and improvements.
The Police Jury owns 160 acres each in sections 25 and 26, 350 acres in section 35 and 375 acres in section 36.
Views: 29
Replies to This Discussion
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Permalink Reply by Bacon on
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I think they're gonna need a few more wells to come on line to make that $5 mil.
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Permalink Reply by intrepid on
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Hopefully someone knowledgeable calculated that for the budget puropses.
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Permalink Reply by intrepid on
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One of the main reasons I posted this is because of a lot of the questions I've seen here. Since this is a pubic entity I would think that anyone who pays taxes or lives in Desoto parrish would be able to look into the numbers, etc on this well and ask the police jury administrator about any questions they may have about how the payments are figured. It should all be public record at this point and open to questions from the public when presented in the proper manner.
That may answer some questions that some may have about royalty issues and such. And, then again, it may not.
It's interesting they got 27.5%. I never saw any report about the bonus they got, if any. Does anyone know what it was?
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Permalink Reply by drilltheshale on
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$28.7 Million.
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Permalink Reply by Skip Peel - Mineral Consultant on -
$27,512 per acre bonus/27.5% royalty. Tract No. 39970 on July 9, 2008. August 13, 2008 was the last state auction to receive bids in this range. There was no auction in September due to the hurricane. The October auction bids were a fraction of the previous auctions.
http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_min_leas_tract1
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Permalink Reply by Skip Peel - Mineral Consultant on
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September '08 Cadillac sales were up 70% in Shreveport. It wasn't just the preacher gettin' paid. LOL!
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