Replies to This Discussion

Permalink Reply by Dorcheated A1 on July 18, 2008 at 14:42

Snake are you talking about 6% royalities.

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Permalink Reply by Moe on July 18, 2008 at 14:53

Let me add......If you don't sign up "NOW" we will have to move on. After all, Doyline is really outside the play and we're doing you the favor. HA!

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Permalink Reply by Dorcheated A1 on July 18, 2008 at 14:56

Moe what's the offer I haven't heard.

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Permalink Reply by james anderson A1 on July 18, 2008 at 14:58

could you please explain what the 6% you are talking about?

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Permalink Reply by Moe on July 18, 2008 at 15:05

The 6% comes from whatever bonus they negotiate for you. Don't forget you also lose another 35-40% to taxes.

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Permalink Reply by Dorcheated A1 on July 18, 2008 at 15:18

We are 15 miles from the biggest producing well in the shale. They will have to start out at $23,000 before I take anybody serious. Now I didn't say i would take it but I will listen.

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Permalink Reply by Snake Stewart on July 18, 2008 at 15:42

From the info I got from Mr.Biggs , this is the figure he gave me.I don't know how it breaks up % wise nor do I care . This is horrible. Mr Merril dosn't charge that much and he actually has done this before ,quite successfully I might add.

If you sign a deal for 6% bonus, that means you pay $60 a thousand on your deal per acre. A $10,000 deal would cost you $600 per acre. A $15,000 deal would cost you $900 per acre.Not to bad unless you have more then 1/4 acre lot. 10 acres would cost you $9,000 , 100 acres would cost you $90,000 & so on and so forth.

If the deal is signed for a % of royalties , then you would be paying these gentlemen for the rest of your lives and his estate for the rest of some of your childrens lives. If the projected Barnett numbers are correct and there is $ 1,000,000 worth of profit per acre , that would mean you would pay on a 25% royalty lease $2,500 per acre over the life of the play per %. 2% would cost you $5,000 , 3% would cost you $7,500 , 4% would cost you $10,000 per acre over the life of the play.

Most of the time a combination of both versions are used to extort money from the misfortunate. Lets say its a 3%/3% deal. 3% bonus and 3% royalty. On a $10,000 lease that would cost you $7,500 + $750 for a total of $8,250 per acre over the life of the play. And don't forget your % value would rise if you sign for better then 25%.

Lose/Lose for the landowner! There is no way ,any of the clowns out there can explain this away. There is no service performed worth this kinda' money for people that own more than 2 acres! If there is I would love to hear about it.For 10 acres you would be looking at about $82,500 for someone to turn your info over to someone else who turns it over to an auction house. Please!

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Permalink Reply by james anderson A1 on July 18, 2008 at 15:17

i do not understand all the things that are going on, and my understanding is going very slow. my first call to get information about this come from an attorney in minden. he wanted to help me, and others, and wanted to do it for 5%. i give it no further thought, and since ran across the HAYNESVILL SHALE program to join, and learn. i was at the meeting, and will be at the one Sunday, trying to learn. my question at this time is, could someone tell me what makes the 6% a "blue lite special"? i am not criticising, but only look for answers. my land is only 6 acres that i am concerned with, but i am truly concerned with this. are you telling me the attorney wants 6% of the procedes from each person involved with signing from this group?

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Permalink Reply by Kassi on July 18, 2008 at 15:21

Geeze! These people are SO GREEDY. They do not need that big a profit margin! Boy folks like that make my blood boil. I wish I had time to go. Someone needs to get in there and show them up for what they are. Otherwise folks will actually sign up with them! Snake, you HAVE TO GO! And while you are there..tell the folks I would represent them for 2.5% of the bonus only. Let those guys sputter on that one!

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Permalink Reply by Dorcheated A1 on July 18, 2008 at 15:31

Kassi, Have you represented anybody else?

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Permalink Reply by Kassi on July 18, 2008 at 16:04

Yes, I was the first one to present (the meeting in Stonewall that drew 400 people April 26, 2008) I was also instrumental in getting the Shreveport public forums put on and was a member of their panel. I have since presented inservices to multiple groups. I have also been featured on channel 3 news including 4 times last week on the 6pm news and was in several articles in the Times in April and May and had a blog on the times until this site came into being and we all moved here. Some I have presented information to chose to represent themselves armed with the information they recieved. Some have asked me to represent them. I am currently representing over 70 households (most for free as I just started charging when things got so big it is engulfing most of my time) with land equalling right at 500 acres. I presented at 3 meetings this week and am presenting 2 meetings tomorrow for people I am already representing to further their education and will be presenting for another section that asked me to come next Tuesday evening.

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Permalink Reply by Dorcheated A1 on July 18, 2008 at 16:37

Kassi, I'mvery impressed sounds like you have been very busy. I know you not going to tell me but I will try anyway. If you were to represent the people out here.

A. What do you think the land is worth.
B. What do think would be a fair royalty distribution.

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