Replies to This Discussion

landownerPermalink Reply by RAZORBACK on March 2, 2010 at 9:32

Pinebelt Energy Resources Corportation

Permalink Reply by mike on April 4, 2011 at 12:14

You are smart to do that.  Do you have any new info about offers?  M

landownerPermalink Reply by Geoff on March 23, 2010 at 15:46

I have been leasing in South Arkansas for years at $100 per acre. Now the companies are paying $175 and $200. I took Border's money in Lafayette County and they drilled a dry hole. I'll be glad to take anybody's money that will pay that much in Columbia County too. It sounds like when my granddad took Amoco's money 40 years ago and they drilled one well in the county and left.

Oil & Gas ProPermalink Reply by W M Guice, Jr. on March 24, 2010 at 10:57

I've been working south Arkansas for many years and $100-$150 per acre, 1/6th - 3/16ths royalty and a 3 year term is more than reasonable.

Permalink Reply by Allen67 on March 24, 2010 at 15:19

I hate to ask "well maybe not" just what oil company do you work for?

Permalink Reply by Jimburgess on April 6, 2010 at 23:17

Les,
Any idea why Pinebelt pulled out of Columbia County? Who do you hear they are leasing for?
Pinebelt is leasing in Union County now. Is Triad a lease broker or oil company?

Permalink Reply by Allen67 on March 24, 2010 at 14:26

I agree. 100.00 per acre was paid to mineral right owners when oil was 15.00 a barrel. Now its what, 85.00. I believe that even offering 100.00 an acre is an embarassment to the company which is offering it!

landownerPermalink Reply by RAZORBACK on March 24, 2010 at 14:50

I agree and no less than 1/4 royalty!

Permalink Reply by tony allen on March 24, 2010 at 15:32

Electro,

I agree with you 100%,while the bonus amount can be negotiated around all the considerations and by the motivating factors for each party,the 25% royalty has pretty much become the minimum a landowner should expect and demand.

Permalink Reply by Aubrey C. Sanders, Jr. on March 25, 2010 at 18:18

Electro,

I think you are right on target. Certainly no-one will ever get Haynesville shale $ for leases. The last time I leased shallow rights on my property I gave it to Heritage w/out bonus $ but, just for 6 months with guarantee to drill at a mutually agreeable location and with 1/4 royalty. Guess what, we got dry hole. We just drilled to 4400 ft.

Anyway, in my book the royalty and length of time trumps bonus payments every time. I think most people do not agree with me on this. But, it has worked well for me.

Oil & Gas ProPermalink Reply by The_Baron on April 7, 2010 at 4:01

When Oil was 15.00 a barrel we could drill a well for 80k,....

Its all about economics.

landownerPermalink Reply by Barbara Boudreaux on March 24, 2010 at 17:55

My aunt in New Mexico was offered $175 and acre with 3/16%. Haven't heard from her this week, but suggested she wait for $200 and acre. What is the current offer for royalty? Just want to get the best we can.

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