Replies to This Discussion

Permalink Reply by inthestix on July 29, 2008 at 23:58

Good point PDMAN....this guy is on other sites doing the same. He probably doesn't even own land there!

Permalink Reply by C.H. on July 29, 2008 at 17:23

Well, I think I can speak from experience when I say:

1. Some companies will pay, some money right now however it won't be the BIG money we are seeing in Desoto and South Caddo. It may be about a year from now before that happens strictly because of supply / demand , price of gas, and the acreage yet to be drilled that is leased with 3 year primary terms and no options. This has put alot of presure on the OCs to poke holes fast to get it held. There are other reasons but these are just the highlights.
2. Also, if there is leasing in T23 it is probably for a different play i.e CV or Oil in efforts to make a good well and HBP the rest of it until another company wants to explore that area, then they will assign it for overrides. (Yes you can structure your lease to prevent this)

That being said:

I too have quite a bit of property in this area and would love to see the BIG BONUS however, I have come to the conclusion that it will be at least a year before that happens. If you follow the Barnet Shale tendencies it took 7-8 years to get as far North as it did (my time may be wrong).

I have been thinking of some ways to get the OCs to explore our area however, there alot of pros and cons I have discovered.

BUT A WORD TO THE WISE: DO NOT LET THEM DO ANY TESTING ON YOUR PROPERTY! IT CAN ALIENATE YOUR PROPERTY!

From your friendly neighborhood landman and land owner.

Permalink Reply by fngrsxnpd on July 30, 2008 at 2:58

Makes sense. I agree totally. So, if approached, we need to be sure and exclude the HS depths. Right?

Permalink Reply by Pittboss33 on July 30, 2008 at 5:10

That is a good idea. If it is there, you can lease again. If it's not, you still have the current lease.

Permalink Reply by fngrsxnpd on July 30, 2008 at 5:35

Pittboss, what do you think about well testing on your property?

Permalink Reply by C.H. on July 30, 2008 at 8:22

Yes DHYG, (Please understand this is how I make my living so all the free advice I give is money out of my baby girls school fund) Yes, put this clause in:

For example: For the Cotten Valley--
"This lease ONLY covers the Cotten Valley formation or the strategrahic equivilent and specifically EXCLUDES all depths into the Bossier and Haynesville formations."

Hope this helps..

From your POOR friendly neighborhood landman and land owner...lol

Permalink Reply by BJ on July 30, 2008 at 14:49

(deleted)

Permalink Reply by C.H. on July 30, 2008 at 8:27

BTW--I heard this Morning that CHK is sending a crew to South Ark. next week to do some leasing--let's all hope they hit FAT ONES! I am still a bit perplexed as to why they would bypass PD area but prolly smart since the money is NOT huge in S Ark yet.

I will let your imaginations work ya over a bit with this news, we all know what this means for our areas

Permalink Reply by Pittboss33 on July 30, 2008 at 10:21

I think they are looking for something completely different in Southern Arkansas (a formation that is not as deep up there). Here's the clause I would use:This lease excludes the Haynesville Shale formation as defined in Office of Conservation Order No. 994-D, effective July 10, 2007 but includes all other formations including the Haynesville Sand formation as described under Order No. 329-C-1.

Permalink Reply by fngrsxnpd on July 30, 2008 at 10:30

Thanks

Permalink Reply by Pittboss33 on July 30, 2008 at 11:29

When you say "well testing" are you talking about seismic?

Permalink Reply by fngrsxnpd on July 30, 2008 at 11:36

I guess??

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