Replies to This Discussion

Permalink Reply by DYST_JP on August 12, 2009 at 4:30

Randy, I am not sure if all property in this section is leased or not. Some maybe held by production. I noticed that Jeems Bayou reworked the oil well and started it up a while back. I am refering to the well next to the old Town and Country school. There has been alot of leasing activity by Petro Hawk in section 3

Permalink Reply by Randy Harris on August 15, 2009 at 14:36

I heard Petrohawk was leasing in the area. Anyone know how much $$$$$$ ?

Permalink Reply by Henry on August 15, 2009 at 14:59

Randy,
I cannot speak to your exact area, but I know Petrohawk has been offering anywhere between $3k and $5k per acre, with 25% royalty, in the southern parts of DeSoto Parish.

Permalink Reply by Ginny on August 22, 2009 at 17:51

Are those considered fair prices or should the owner hold out for more?

Permalink Reply by Henry on August 23, 2009 at 1:06

Warden,
I'll let others advise you on what's fair. Everyone has their own definition of "fair." It all depends on how much you want the money now, vs. taking a chance on a better number in the future. Not knowing your financial situation, I won't even think of advising you. Having said that.....

If you are thinking of leasing, do a bit of homework, and read over the many discussions on this site about what items to include in your lease. There are many things like cost-free royalties (i.e., no deductions for things like dehydration, transportation, etc.), no warranty of title, no surface use, vertical Pugh clause, and many more items you might find useful. Regardless of bonus and royalty, it is important to get the lease terms right too. Your lease will run for 50+ years. You only get one chance to get it right.