Replies to This Discussion

Permalink Reply by kfly on August 9, 2008 at 5:40

Thank you, Wolverine.

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Permalink Reply by CMI A1 on August 9, 2008 at 4:03

I don't think you have been able to wrap your mind around the concept of supply and demand in the Haynesville Shale play.

The way things work is that the little money comes in the beginning when people are caught off guard. Then... people find out what they have. They build their knowledge, power, and patience level. More companies come in which makes competition and Halleluiah, you then have higher prices and better royalty percentages.

The prices won't go down until someone drills a well close to Atlanta Georgia and possibly misses the Haynesville Shale. And no, I am not convinced they will miss it in Georgia. This thing is huge, O & G is just not admitting it yet.

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Permalink Reply by kfly on August 9, 2008 at 4:14

Yes, competition does drive prices up... that's increased demand for the supply.

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Permalink Reply by kfly on August 9, 2008 at 5:14

In this case, the competition is the O & Gs competing for property to lease.

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Permalink Reply by Mit on August 9, 2008 at 10:06

But it does not produce nearly as much gas per section as Barnett or HS projections. A lot of area, but no great wells.

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Permalink Reply by Bacon on August 11, 2008 at 3:09

The Marcellus also has major water and takeaway issues. According to Aubrey Mc. anyway.

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Permalink Reply by easttexas12 on August 9, 2008 at 5:33

LMAO your so right man, this field is the 4th largest field right now in the WORLD. That means the Haynesville Shale field is larger than 90% of the fields in the Middle East! 10 years from now (maybe sooner) we'll see counties and parishes in the ArkLaTex with the largest per capita income in the United States. The growth from that will be prolific..

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Permalink Reply by Jim 007 on August 9, 2008 at 3:56

Don't let these little lies cause you to worrie your little head any, just look at the o/g business as a whole. RECORD EARNINGS EVERYWHERE!!!!!!!!!!! They aren't about to run low or out of capital or anything else!

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Permalink Reply by Snake Stewart on August 9, 2008 at 4:26

Those big SUV's will certainly be replaced by those wonderfull N/G driven SUV's that will be the next wave of the near future. As vehicles are brought to market and stations begin handling N/G at the pumps , this will open a market that will drain our existing pipeline capacity in a matter of weeks. As we move to this next temporary stage we will begin to understand the importance and true value of what many are so eager to just give away.
Fear works best on those that do not know the answers.
" The meek shall inherite the earth but O&G's will own all the minerals"

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Permalink Reply by M. Mcwilliams on August 9, 2008 at 5:12

I said I'm no expert, and since I'm still hoping for an offer, I'm not any more ahead in this game than anyone. I like dreaming of even a few hundred dollars more a month discretionary income. If royalties were earned along the lines of some projections, I would have an easier time of things all around, even off of just 2 acres. But I'm not going to base my decision-making on the thought that this thing will get bigger and bigger and that lease offers will be certain to keep going up, or that it is a certainty that the companies will drill every single section, that there will be enough pipeline coverage to sell when they want to, that the value of natural gas will average $9/mcf for all time, or any of the other things that are nice to dream about, but that could change.

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Permalink Reply by kfly on August 9, 2008 at 5:25

I think you're being smart. Some people seem to think they are going to become wealthy off of a small piece of property. This thing may change their lifestyle a little, make their monthly budget a little easier, but that's about all.

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Permalink Reply by Margaret Wren on August 9, 2008 at 7:13

SMALL LANDOWNERS!!! The Cotton Valley formation already made me comfortable, for my little 4 acre piece of land(very close to EGP well)at 25% royalties, enough so to retire. What makes anyone think that a small piece of land won't make a significant difference has just not done the math. I stand to gain about 5 times more in addition to what I am already getting if they go for the Haynesville Shale, which I believe they will, since they are leasing around here again at unbelieveable bonus rates. Am I bitter because I signed 10 yrs ago? Heck NO!!! I have already drawn more than they will ever offer me in a bonus. I do have depth limitations, we will see what that brings me for my drop in the bucket of O&G plays. Will it make me wealthy? If i invest it correctly, YES!!!

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