Replies to This Discussion

Permalink Reply by Two Dogs, Pirate on September 15, 2008 at 3:34

Checkmateking, what do you mean by putting on the brakes? A halt in leasing or drilling.

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Permalink Reply by Checkmateking on September 15, 2008 at 3:36

Leasing activity, especially in non-core areas. One Landman told me they are trying to "clean up" the core areas.

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Permalink Reply by Two Dogs, Pirate on September 15, 2008 at 3:44

Then I would think that my previous posts are correct, land title backlog, is the cause of the brakes be applied. Most leases are for five years, I think most of the mechanical problems will be solved by then. The problems with the rigs and other stuff will apply to the leases that were taken 3 years ago, that will probably be good for those mineral owners that signed for $100 and 3/16. They are hoping for rig problems that will delay drilling, giving them a chance to renegotiate.

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Permalink Reply by Catfish on September 15, 2008 at 6:55

Don't let them kid you they are still leasing. I have land in s13 t18 r12w and last week recieved a valid offer for 15k from red river a month ago there was no intrest from anyone for that section. They just are going about in a more organized manner.

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Permalink Reply by Checkmateking on September 15, 2008 at 7:52

Yeah you are right on that point, Red River has sent out alot of letters lately, I was thinking more along the lines of frenzied leasing that was taking place in South Caddo and North Desoto areas, where bidding wars were erupting.

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Permalink Reply by H P Bryant on September 19, 2008 at 14:46

I dunno about the pricing part because I see where GP locked in their prices through 2009. Floor--around $9.00 and top around 15.00. I don't remember exact. And really don't see how they can do that since it involves landowners and partial interest in wells. ?

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Permalink Reply by Checkmateking on September 19, 2008 at 16:09

Well if they have hedged at that amout I hope it goes up this winter, I remember where some futures this winter were going for 13.50

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Permalink Reply by Grillin' - MmmMmm on November 14, 2008 at 7:49

HP: The companies lock in the price they will receive for their gas only. so if a company owns a 50% interest in a well, they sell forward only that 50%, minus the royalty volume. Now the royalty volume, depending on the terms of the lease, could be included as well but may not be. This is done all over the country. CHK has a huge portion of their 2009 gas sold forward with similar vehicles.

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Permalink Reply by Wanda on September 19, 2008 at 17:19

Am I understanding this right?If i am leased and them forced pooled into a 640unit,and they have not drilled by the time my lease runs out(in 1 yr) I cannot nego.another deal?

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Permalink Reply by Grillin' - MmmMmm on November 14, 2008 at 7:51

Wanda: I don't think that's right but I'm sure someone has answered that for you.

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Permalink Reply by HBP on September 21, 2008 at 3:25

I agree. More test wells over the fall and winter to strengthen the upside argument. Learning curve on this particular shale begins to shorten. More big deals will find structure.

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Permalink Reply by HBP on September 21, 2008 at 3:46

Not to my knowledge....

But, would that really be earth shattering?

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