Lease Amount for Shallow Rights?

I realize this site pertains to the haynesville shale but there are still a lot of independents drilling shallow wells. I was wanting to get the members' feedback on what a fair per acre lease price would be and any pitfalls that should be avoided. Thank you in advance for your help.

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Permalink Reply by Checkmateking on April 25, 2010 at 12:54
Leasing for conventional formations depends on location more than anything. So I don't think anyone could give you a ball park figure unless we know where you are. But a ball park range could be anywhere from 100-400 dollars an acre.
Permalink Reply by Bruce on April 25, 2010 at 15:00
Checkmateking, south Webster, east of Minden
Permalink Reply by The_Baron on April 26, 2010 at 3:07
Location is important, mostly the proximity of established fields. A true wildcat will be at a higher risk, and thus the operator will be less willing to splurge on a high bonus and/or high royalty. Conversly, if they are trying to offset a producing well a stones throw away, the risk is lower (albeit there is always a risk) and the operator will be willing to pay a little more.

Also important is the depth. A deep Cotton Valley well is more expensive than a Nagatoch or wilcox well, the deeper more expensive wells will have more wiggle room than the shallower wells.
Permalink Reply by The_Baron on April 26, 2010 at 5:34
The wilcox has been activly drilled and produced from for about a hundred years.
Permalink Reply by The_Baron on April 26, 2010 at 8:41
The wilcox covers a pretty big area.... what areas do you contend are being lease hounded? Are you confusing the leasing activity of small independents as lease hounding? And are you accusing me of being a leasehound????
Permalink Reply by Checkmateking on April 26, 2010 at 8:59
Unfortunately Baron, there are some on the site who think any landman trying to make an honest living is a "leasehound".
Permalink Reply by Checkmateking on April 26, 2010 at 8:04
Do you know your section township and range? Therefore we could look at existing production in your area and give you a better idea. The size of your property is also a factor, the more land you own the more bargaining power you have.
Permalink Reply by Bruce on April 28, 2010 at 15:07
Hi Checkmateking, sorry for answering so late, I've been out of town for a while and just logged in. My section is 31 township 19 range 10W. Between me and my dad we have 50 acres and our neighbor has agreed to work with us who has another 50 acres. Any insights you can give would be appreciated, thanks.

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