Replies to This Discussion

Permalink Reply by North LA on July 8, 2011 at 17:37

Pucker up!

 

 Seriosly though, everyone must do what's best for their situation. I'm fortunate to be able to wait it out but I know there are many in this economy who need the money now.

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Permalink Reply by Herman (Chuck) Plonnigs, III on July 9, 2011 at 4:00

Thanks so much for your enlightened observations and advice.

 

One little nugget I picked up recently, from a person who is involved and considered in the know, is that an individual land owner receiving royalty money to the tune of millions per month was approached by an energy company. The landowner was offered, and took, a hundred million plus amount for his future royalty production.

 

My thought and my take on this is A) knowledge of a formation is of utmost importance w/re to duration of economical production time and B) an investment such as this would indicate to me that fossil fuel values, in their natural state, appear destined to increase in value into the unforeseeable future.

 

In other words in would be to the advantage for an unsigned land owner, who doesn’t need to lease, to hold out to see what lower Smackover exploration should discover!

 

Plus keep in mind the brown dense is not the only formation down there.

 

You never know!

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Permalink Reply by Skip Peel - Mineral Consultant on July 9, 2011 at 4:13

Herman, nice but small potatoes relatively speaking.  There were a half dozen sales of HA/BO rights in NW. LA. and E. TX. early in the Play that I am aware of three to five times that amount.  Of course bonus offers at the time were in the $10,000+ range.  If the buyers' acquired the rights and/or production with reasonable debt terms and were planning to hold for long term income, I think they will be okay in the long run.  If not, they could be in the same boat with operators struggling to service debt based on present cash flow.  Even when there is science and production data available these are highly risky investments made only by a relative small number of firms.

You're right.  The real benefit of any Brown Dense exploration may be the science compiled on other prospective formations.  Considering the history of O&G E&P in south AR., a bunch of new holes punched with current technology would likely reveal other formations worth exploring.

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Permalink Reply by Herman (Chuck) Plonnigs, III on July 20, 2011 at 1:30

Mr. Broadbent,

 

As memory serves, can't find my notes on this garbage dump I call a desk, the Mr. Guidry that called me was Ross. But he is from Lafayette.

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Permalink Reply by Devon Polansky on December 21, 2013 at 2:06

My Name is Devon Polansky ,I have recently inherited some land in section 21 range 6 in Claibourne Parish and I would like to know if there is any drilling or leasing going on in my immediate area.Any help or suggestions with this would be greatly appreciated.

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Permalink Reply by Devon Polansky on December 21, 2013 at 2:10

Polansky 54@gmail.com or 619 829-6724

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Permalink Reply by Skip Peel - Mineral Consultant on December 21, 2013 at 3:58

Devon, your location information is incomplete.  You need a complete section-township-range description.  As an example it might be,  Section 21 - Township 22 North - Range 6 West.  We would write that as S21-22N-6W.  Also use these links, join these groups and read through the discussions posted in each to get up to speed.  Post any questions you may have in one of those two groups.

http://www.gohaynesvilleshale.com/group/brown-dense-lower-smackover

http://www.gohaynesvilleshale.com/group/claiborne_parish

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