Petrohawk says the 2008 Land Grab is over!
I was at a lunchen today with a speech given by a VP from Petrohawk. It was an infomative talk about the HA. He did say that the Hawk and CHK are partnering up on some wells, and are trying to work together instead of creating competion in the leasing game.
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Replies to This Discussion
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Permalink Reply by The_Baron on
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It is possible that they are verifing the mineral tiltle to be sure that you are someone they need to deal with.
Or...these are large companies, they have a large beauracracy. It might just some time for their lawyers to wrangle with it before you get an official response.
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Permalink Reply by The_Baron on
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Maybe...or one of their young barely trained landmen miss it the first time.
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Permalink Reply by The_Baron on
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In many areas I have seen people running off the assessors rolls, and clearing title later.
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Permalink Reply by Duncan McGehee on
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IMO
1. It's possible they are blowing him off. It's also possible that they are overwhelmed. Hard to say with Chesapeake. If they have the bit turning to the right, more than likely they did a drill site title opinion only.
2. If a well is made than they will come in and set up the unit and abstract all tracts in the unit. If there is open acreage found, they will be all over that like a jimmy hat.
This bodes well for the unleased mineral owner. The owner can ask for and probably receive the most favorable terms given to owners in the unit. Of course, who knows what that price is?
If they try to force pool the unleased interest, at the hearing the unleased owner can say they want to lease but for the same terms as the highest terms given to the leased owners in the unit. They should then get the real numbers out then. In Mississippi, I've seen the deal made before the hearing and the hearing is to announce and not listen to any side. skullduggery to say the least.
3. If you think about it. A company that has 4 or 5 hundred thousand acres leased generates enormous stacks of paper. A couple of stacks 3 or 4 feet tall dropped on one person's desk is a crushing blow for the person at that desk. Then there are the meetings to discuss everything. Even if you tell them your acreage is open it could take a while to run through the grinder before they get back to the unleased owner.
4. IMO, Chesapeake wanted to get as much acreage as possible. They then book this acreage as PUDS (Proven Undeveloped). This helps sell their stock. They are various methods they use, but it is to increase the price of the stock. When you are the 800 lb gorilla with trainloads of money, you can trump all offers. When you get someone in the same sand box willing to go toe to toe with the gorilla, prices skyrocket. Landowners tend to look at the bonus more than the royalty. Royalty is where the true money is.
Well, the bubble burst and landmen knew this was inevitable. Now with the financial morass everything has ground to a halt. It will start back, but probably with the companies drilling more than leasing and when they lease it will be in their core areas which they like. They will drill wells in their core area with the least average royalty first. They can not service all the land leased within the primary term, so will not re-lease areas that are more speculative and re-lease the areas they like, but don't expect more than $5,000.00 per acre bonus.
Just my 2 cents worth
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If they force pool you they have to get the State's permission. If this happens, you should get a notice of the hearing. Be at that hearing and state you want to lease and seek the best terms given for leases in the unit.
They can unitize anything. Whether they drill it or not is a separate issue. More than likely they will get around to the unleasd before they drill and if they don't you are in the catbird seat.
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Permalink Reply by BirdDawg, plain ole' idiot on
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KB,
Been there, done that myself. But we had promises to buy that were withdrawn (CHK). They, in my opinion, are a piece of S**t.
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Permalink Reply by Cathaus on -
CHK, HK, and the KKK all try to run over, ramrod and rule by coercion.......might DOES NOT make right.
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Permalink Reply by Grillin' - MmmMmm on
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Rick: you say the well has been drilled and is waiting on completion. So i that case, what are you asking them for? Not being a smart arse like I usually am, just asking for info. If the well was drilled within the last 1-2 months, I can tell you that they CANNOT tell you how much it costs because their accounting system won't be able to tell you that until about month 3 (if they are lucky). I have a well drilled 4 months ago and I still can't tell you how much exactly and I was on site! Plus, if it is waiting on completion, it isn't producing so they can't supply you with production information. Now, they should have well logs which I believe the codes may say you are entitled to. What else? Maybe I can help shed some light on why it may/may not be forthcoming. Cna't say why they won't return your calls/letters, but I can tell you a bit about how long it takes to move things around in a company that size.
And you haven't gotten to the "fun" part. Once they start producing/selling, they will track operating expenses, processing fees, etc. and these are divided into about 50 categories/subcategories. All of which have to be recaptured before you get to start your income. It is a big accounting deal and will take some time to understand and figure out. It will be fun. Then there's the sales price they receive, the adjustments, the taxes, etc. That's why companie shave 1000's of accountants!
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Permalink Reply by Rick on
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The Baron, I respect your insight and your opinion and personally, I hope you are right, I hope they are running everything down and checking things out because I am and I won't be going away or hiding under a rock, shivering in fear of the mighty CHK.
The well is drilled, it went to about 11,500' or so and turned 5,000' horizontal, it is recorded as "Waiting on Completion" and I hope it comes in like it's sister well a section or so to the north on the Bison property, 10.6 million cft thru a 5/64 choke, my neighbors will be richer than they were and CHK will be fatter but I'll be richer too, despite my small acreage and if takes every dime of revenue that my land draws for lawyer fees against CHK, so be it. The media exposure that these kinds of actions will bring will cost them much more than a lawyer will cost me. They can send a rookie or the can send Aubrey, it don't matter to me, they ARE going to pay me my portion of this section, come hell or high water!!
I don't think the inexperienced landman deal will float because they have been active in this section since April 2008 and have known awhile that I am here; so they have had plenty of time to jerk the rookie and send McCotter or whoever they want to verify this and do something about it. As I said in the other post, I am being patient and they legally have a little time, according to the codes they have 90 days from the completion of the well to notify me and I have neighbors to let me know which date shall be considered the completion date, so my countdown clock is setting on go and they WILL act within that 90 days, either voluntarily, as they should, or with legal persuasion.
Also, I don't think KB is emphasizing changing too many of the LA codes, I think KB and myself and others would like to see the codes that are there enforced and followed by the O&G's; their intentional ignoring of the codes is what gives them a bad name and causes people to seek tougher standards and code changes.
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Permalink Reply by Grillin' - MmmMmm on
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But remember, at the end of that 90 days, they won't be "paying you" unless they offer you a lease. They will start to work on paying for your acreage's share of the drilling/completion costs. That will come out of production revenue minus op expenses. Then, once that the drilling/compl costs are recouped, they will start paying you monthly for your share of the revenue, again minus op expenses/taxes/etc.
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Permalink Reply by TERRY CHEATHAM on
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Sounds like collusion to me. The Clayton Act allows for treble damages to the injured parties. I wonder what the Justice Dept would say about that?
CT
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