Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on March 3, 2012 at 13:33

Make sure the attorney is an experienced O&G attorney.  The difference in cost is inconsequential compared to the long term potential monetary value of an O&G lease.  Mineral law is not a legal specialty that can be mastered by a cursory review of the LA. Mineral Code.

Permalink Reply by LMC on March 3, 2012 at 17:04

Thanks Skip, I talked with a family member this evening and they have a long time friend that is an attorney.  They are going to ask if he can recommend an O&G attorney to look at the proposed lease agreement. 

Permalink Reply by Oliver D. Towns on February 19, 2012 at 15:05

We own 160 Acres ((SW Quarter of Section 8, Township 23 North, Range 13 West.  Pugh Clause was OK; 3 Year Lease Term with 3 Year Renewal; inital conversation indicated they were interested in 9,000 feet and below.  Landman told us they had a 2 section play working.  How close is your property to ours?

Permalink Reply by Oliver D. Towns on February 19, 2012 at 15:18

How close is your land to our tract that JBL is attempting to lease from us; trying to get a feel if it is in the same play.  We previously had this land leased to Martin Production Co. (Shreveport) on a 3/3 ($500 Lease Bonus), however Martin did not renew - we heard that there was problems working out a working agreement with Petrohunt and additionally that there were questions about who owned most of the Minerals in the rest of S-8 (Bollinger or Weyhauser); guess that has finally been resolved as JBL rep told me that a tenative agreement with Weyhauser has been reached. 

Permalink Reply by don3833 on February 20, 2012 at 9:37

Mr. Towns,

We're neighbors.  I have the S/2 of SE/4 in Section 8. If they get Weyhauser and us signed sounds like they about have Section 8 tied up.  We're still negotiating but not far apart. How long have you been in discussions with JBL? They have not asked me for any option after the initial three years.

I was also leased to Martin for three years. Waste of time.

Do you know the other Section they are interested in?

Have you had any experience with Petrohawk?

Thanks for your reply.  I live in Texas and this site is  the best way I have of finding out what's going on over there.

Don

 

 

Permalink Reply by Oliver D. Towns on February 21, 2012 at 6:26

Negoitating about 3 1/2 week; 1 visit (from 2 of then) and 2 telephone calls and 1 letter.  No contact for the last 10 days.  Other landowners tell me JBL is pushing a 3 yr/20%/$250 lease bonus; As stated earlier, they offered me a 25%/$250/ & a 3/3. 

Don't think they got Weyhouser with these same terms; would be informative to know what Weyhauser deal was/is.

We have not had any experience with Petrohawk; just EXCO & Cheasapeake; we like EXCO as they are easy to deal with and no problems over the last 4 years with production checks.  Cheasepeake OK, but their pricing is different (lower per MBF) than EXCO - we, among others have not received answers to our total satisfaction, but they are within the ballpark.

As of this morning, We understand, from conversation with a friend in the O & G Buisiness, that this is a 16 Section Play primarily in the Haynesville Sands with Horizontal Drilling; this changes things somewhat.

An individual (hereinafter called 165) with 165 Acres in the South part of Sections 4 & 5, is also in contact; we would feel comfortable with 25%/$300/ & a 3 year lease (renewable options OK, but not required).  Further we are going to take them up on their offer to exclude shallow play @ 6,000" and above.  If there is any play in the Pettit (around 6,400 feet), or Cotton Valley (8-9,000 feet), we would not want to stop a well.  165 plans on excluding the Smackover (around 10,200 - 11,000 feet in that area) and the Brown Dense (Right Below the Smackover) without additional Lease Bonus; we are looking at this provision also.  Petrohawk is also leasing in Lafayette County, AR and there are plans for a Brown-Dense Exploratory Well around the Bradley, AR area. 

 

What are they offering?  Our 160 Acres, 165's 165 Acres & your 80 Acres combined equal 405 Acres; if we all stay on the same page, we all should do well; what say you.

We talk to Mr. 165 on a regular basis as he leases the hunting rights from us for our 160.  My Cell Phone is (318)608-8599.  Look forward to talking to you.

Permalink Reply by don3833 on February 21, 2012 at 8:24

Thanks for the update.  Maybe Mr. 165 can get info from Weyhauser, I think he leases their land for hunting also.  You and I are pretty close on bonus and royalty.

They've sent me two leases and both of them exclude everything above the Rodessa Base.  I don't have any idea on the probability of another company wanting to lease the rights from the surface to the Rodessa Base so I haven't put much value in that exclusion.  I agree we should keep in touch, seems like we have a stronger position.  I've been told repeatedly by informed people that we're too far west and/or south for the brown dense and that its mostly gas in Louisiana.  If those horizontals cost around 8 million to put in it seems unlikely they would be interested in gas at current prices.

I agree we should do better if we stay coordinated.  I haven't heard anything from the land company for a couple of weeks.  I'll give you a call in the next few days or sooner if I hear from JBL. 

 

Permalink Reply by Oliver D. Towns on February 22, 2012 at 16:40

We talked with JBL twice today.  They are sending me the LA Dept of Conversation Data on Rodessa Base down thru Haynesville Sand and a new proposed lease.  We plan on reviewing it and fine tuning the clauses (we add) and could finalize a lease with JBl/Petrohawk sometimes next week or two; they pay by check, not bank draft.  

Our lease will exclude everything above the Rodessa Base and below the Haynesville Sand; Even though we are unaware of Brown Dense in this area, it will also be specifically excluded (just in case) - we will see what happens in Bradley, Ar area.

Got some further clarification on the potential drilling; tenative plans are to tap the Haynesville Sand and then do several laterals (horizontals) from the central site out to about 3,000 feet each. 

Don't know whether the units will be 640 or 1320 Acres or possibly less.

Bubba 165 does lease Hunting Rights from Weyhouser.  As I said earlier, he leases Hunting Rights from us; We have Timber Tracts scattered in several states and do not routinely get by our tracts as frequently as we would like to; Bubba looks after this property for us and keeps us informed. We talked to him today.

Lease Play is 64 Sections in LA.  Understand Southwestern + one other are leasing in South AR; My experience with Southwestern is they don't have much give in their offers and will not hesitate to make you a working partner if you do not agree to their terms, as long as they have the required % (different by state) of land leased in a section.

Would recommend that you consider whether your lease needs to address the various cost (transportation, cleaning/compressing of gas, etc.) as I have read several post on this site where Petrohawk was increasing Transportation Charges.

 

Permalink Reply by don3833 on February 23, 2012 at 6:25

Thanks for the info.  After receiving the initial lease from JBL I responded asking for more bonus, a higher "no cost" royalty (which specifically excluded post production cost including transportation), a limited shut-in clause, a conditional salt water disposal clause and a non-hydrocarbon mineral exclusion clause in addition to their Appendix A clauses.  JBL replied with a revised lease only taking exception with the "no cost" portion of the royalty clause but not changing bonus or royalty percentage.  I've only had the one conversation with them.

I'll call you within the next couple of days to review everything before calling them.

Bubba has been kind enough to keep my lanes mowed the past couple of years, he's a real gentleman.

Permalink Reply by Rebecca Lane on March 21, 2012 at 16:36

Don, any update on leasing activity in T23NR13W or the vicinity? We do not live in the area and would appreciate any info you can share.  Thanks.

Permalink Reply by don3833 on March 22, 2012 at 5:53

Rebecca,

Everything is quiet.  Haven't heard from JBL for over a month.  Spoke with another owner in Section 8 and he had not heard from JBL recently either. At one time there was supposedly an issue over mineral ownership on adjacent land ( which was maybe why the previous lessee never drilled) but also heard that had been resolved and a lease signed on that property.  Skip Peete says no leases have been filed by JBL.

I'll post if I hear from JBL again.

 

Permalink Reply by Aubrey C. Sanders, Jr. on February 23, 2012 at 10:52

Pro Hobbs, I have just taken cursory examination of all the info you have generated. I will take closer reading soon. I would believe that it is very  probable that that they are looking at Haynesville sand. I would think you should contact JAG operating (Bob Pettit) to see if they are interested. They are good company and are actively drilling Haynesville sand with good success. I do not have Bob's number at hand but will look for it and send to you. Their activity is on both sides of stateline. I have known Bob for more than 50 years and know him to be a good guy. I think you can get better lease terms. I will be talking to one of their employees and pass some info on to him. I have been talking to him on a daily basis since XTO started building location on our place as he lives right next to our land. Is Samson willing to lease just to base of Cotton Valley? I think not.

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