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Permalink Reply by Skip Peel - Mineral Consultant on September 29, 2022 at 11:17

Nope, not currently.  However Tellurian will need to drill some wells soon.  Tellurian holds Field Order for eight wells that include Section 19 so all the company needs to do is apply for permits to drill.

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Permalink Reply by Tommy on September 30, 2022 at 3:20

Thanks Skip. Great to have your wealth of knowledge and insight.

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Permalink Reply by Skip Peel - Mineral Consultant on September 30, 2022 at 3:27

You're welcome.  Tellurian appears to be having significant difficulty in securing financing for their Driftwood LNG project.  I'm not sure how this may affect their upstream activity however they tout their drilling success and income in their corporate presentations.  I doubt that Tellurian will abandon their LNG plans and turn to drilling their Haynesville units as their primary focus.  If the company fails to get the backing they need for their LNG project, will they sell their Haynesville units?

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Permalink Reply by Tommy on August 30, 2024 at 2:14

Hey Skip, we recently received several mineral rights offers in 19-11-10. Is this due to Tellurians recent sell. Largest offers we've received to date. Interested in current interest to this area. Thanks for any insight.

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Permalink Reply by Skip Peel - Mineral Consultant on August 30, 2024 at 3:20

Hey, Tommy.  I'm not sure that Aethon's acquisition of the Tellurian HA interests are behind the recent offers.  Although I don't see any alternate well applications or well permits for Section 19 specifically  SWN has drilled a number of good wells in the township and is in the process of drilling more.  I think the offers you have received reflect buyer interest in the township for both of those reasons.  If you are considering a sale, I would advise that you wait for an alternate well application and/or well permits to drill.  If the offers are the largest you have seen previously, chances are they would get even better if one or both of those things were to happen.  There is a lot of competition currently for Haynesville/Bossier mineral rights and that has served to keep offers up even though the price of gas is low.

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Permalink Reply by Tommy on August 30, 2024 at 6:53

Thanks Skip. Just for my edification, would $15K/acre be way out of realm of reality right now?

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Permalink Reply by Skip Peel - Mineral Consultant on August 30, 2024 at 7:33

Tommy, I got your s-t-r wrong.  19-11-10 has an existing unit well and alternate wells approved for 2 H BO, 2 H HA 19, 2 HC BO, 2 HC HA 19 & S/2 18, 4 HC N 1300' 30 & 19 & S/2 18.  That's two Bossier and 2 Haynesville alternate unit wells, 2 Haynesville HC wells for 19 and the south half of 18 and 4 HC wells for the south half of 18 all of 19 and the north 1300' of 30.  You should have a notice letter for those wells and that is certainly the reason for getting offers to buy your minerals.  The challenge is getting buyers to value your Bossier potential.  You are in a good spot for Bossier.  I'd say your minerals are worth $15K an acre, $7500 per royalty acre if you have a quarter royalty lease.  Let me know if you need any further help.  Good luck.

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