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Started By
Message
re: Haynesville Shale
Posted on 7/4/08 at 12:05 am to TigerStuckinOkieland
Posted on 7/4/08 at 12:05 am to TigerStuckinOkieland
20%????
1
Posted on 7/4/08 at 12:17 am to Tiger JJ
You read it right!
The intrastates have a history of nailing "low volume wells" with huge discounts to index. The only good thing is that it's based usually off Henry Hub or a combination of HH and a couple of high valued pipe indices. However, they do typically offer low-pressure service, whereas the interstate pressures are much higher and compression costs eat up just about as much in fuel.....neither is particularly heart-warming, but at least the gas flows most of the time.
The Haynesville wells should not suffer the same fate.....two different animals....the low volume/low pressure wells will suffer even more due to the onslaught of the Haynesville.
The intrastates have a history of nailing "low volume wells" with huge discounts to index. The only good thing is that it's based usually off Henry Hub or a combination of HH and a couple of high valued pipe indices. However, they do typically offer low-pressure service, whereas the interstate pressures are much higher and compression costs eat up just about as much in fuel.....neither is particularly heart-warming, but at least the gas flows most of the time.
The Haynesville wells should not suffer the same fate.....two different animals....the low volume/low pressure wells will suffer even more due to the onslaught of the Haynesville.
Posted on 7/4/08 at 8:45 am to TigerDog83
Tiger Dog, need your opinion.Close friends of ours have a 1/2 Million$ home/horse farm on 7.5 ac. with minerals in Desoto.They are thinking of putting it up for 1.5 mil$.. Do you think the minerals are worth $1 mil? They are leased at /4 royalty.Things are so crazy now. First I laughed at them, now I'm thinking maybe it is possible
Posted on 7/4/08 at 8:51 am to animallover
The only way anybody is going to receive a premium for their minerals is if they are producing. If the minerals are not producing the royalty buyers will probably only be willing to offer between $5,000 - $25,000 per acre, depending on location of the minerals, lease situation, royalty amount, etc. Asking 1 million dollars for 7.5 acres of minerals is just wasting time.
Posted on 7/4/08 at 9:13 am to TigerDog83
ok, what if Chesepeake starts drilling a Shale well (pad is already there in their section). Then what?
Posted on 7/4/08 at 10:08 am to animallover
For what it's worth, and as a reference, our family recently sold 1/2 of our net mineral acreage in the Woodford Shale play in Eastern OK to a major player in the Haynesville play.....
same 1/4 royalty situation with an existing "low-volume well" producing.....no Haynesville drilled yet.....value was in the $35K/acre range... from what I've seen so far, I like the Haynesville much better.
same 1/4 royalty situation with an existing "low-volume well" producing.....no Haynesville drilled yet.....value was in the $35K/acre range... from what I've seen so far, I like the Haynesville much better.
Posted on 7/4/08 at 10:14 am to TigerStuckinOkieland
Thanks for the info. I will pass that info to my friends.
Posted on 7/4/08 at 10:49 am to animallover
I agree with the statements made previously, though.....you're not going to get the max offer until a well is drilled on or nearby your acreage/unit area....there is always some risk of limited recoveries/well problems that could defer or limit ultimate value...that's what the buyer will build into their offer in the way of a discount for risk....
Given that your friend has a home/ranch with nice improvements on it, I would suspect that there is some "premium" that will attach itself to the mineral value simply as a "cost of doing business" in the area. Not knowing exactly where the acreage is in proximity to the "Haynesville Fairway", which still hasn't been completely defined, it's even more difficult to put a value on it. Hope they hit a home run, though!!! If not, then maybe a solid double or triple!!
Given that your friend has a home/ranch with nice improvements on it, I would suspect that there is some "premium" that will attach itself to the mineral value simply as a "cost of doing business" in the area. Not knowing exactly where the acreage is in proximity to the "Haynesville Fairway", which still hasn't been completely defined, it's even more difficult to put a value on it. Hope they hit a home run, though!!! If not, then maybe a solid double or triple!!
Posted on 7/4/08 at 10:52 am to TigerStuckinOkieland
A shale test well is being drilled about 5 mi. west and another 5 mi. north of this location, so time will tell
Posted on 7/4/08 at 10:56 am to TigerStuckinOkieland
quote:
Not knowing exactly where the acreage is in proximity to the "Haynesville Fairway", which still hasn't been completely defined, it's even more difficult to put a value on it
What about those of us supposedly in the Haynesville Fairway? I have not leased because I still cannot find a "value" for my 21 acres. Do you have any suggestions as to a value? I am in 15N, 14N, Sec. 12, just about 3 miles south of the Caddo Parish line in North DeSoto Parish.
This post was edited on 7/4/08 at 10:59 am
Posted on 7/4/08 at 11:10 am to insomniacnla
I'm not as close to the play as some of my old Shreveport land buddies, but from what I've studied and visited with the major players about, North DeSoto Parish is "golden" if this play is somewhat blanketed and consistent in its "reserves characteristics", which won't be known until more wells are drilled.....all things point to consistency; thus, the bold statements by McClendon, Wilson, and others.
Posted on 7/4/08 at 11:18 am to TigerStuckinOkieland
Thank you. Yesterday, I mentioned to the landmen some of the statements made by CEO Aubrey McClendon referring to the average amounts paid per acre by CHK ($15,000 - $25,000 per acre)to get the leases, the landman got upset with me. I told them I did not have to be paid the most, but what they were offering me, I would have been paid the lowest amount so I did not lease and CHK withdrew their offer. I have another company that is matching the CHK offer or offering better than the CHK offers so I am not that worried about it, I was just trying to figure out the ballpark range that I should lease for.
Posted on 7/4/08 at 3:42 pm to insomniacnla
I have heard that people are selling their minerals in So. Hills for $16500 per LOT. If so does anyone know who is paying that? Also does anyone have a contact no. for JDP Energy
Posted on 7/4/08 at 4:00 pm to animallover
Has anyone heard the typical lease rates at the area of Township 18 North – Range 15 - Section 21 in Blanchard? I heard people in the neighborhood are getting $ 7,250.00. Would the PXP - CHK deal do anything to depress the amounts paid (I dont' see how it would)?
Any head's up about what's going on in this area would be greatly appreciated.
Any head's up about what's going on in this area would be greatly appreciated.
This post was edited on 7/4/08 at 8:15 pm
Posted on 7/4/08 at 11:23 pm to animallover
JPD's contact # is 318.222.2856 or 318.425.0424, their address is 400 Travis, Ste. 1811.
My parents are in So. Hills, JPD's letter offered $1,000 bonus per home lot, 1/5 (20%)royalty, and 3yr., 2yr option lease. That letter was dated June 13.
They were also sent another letter by Fleet dated June 24. It offered $5,500 bonus/acre, 20% royalty, 3yr./2 yr option lease.
I've attended some a group meeting with my parents because they're older and I need to stay in the loop regarding their matters. The neighborhood is organizing quickly & efficiently. Haven't heard anything about the $ amount you mention.
My parents are in So. Hills, JPD's letter offered $1,000 bonus per home lot, 1/5 (20%)royalty, and 3yr., 2yr option lease. That letter was dated June 13.
They were also sent another letter by Fleet dated June 24. It offered $5,500 bonus/acre, 20% royalty, 3yr./2 yr option lease.
I've attended some a group meeting with my parents because they're older and I need to stay in the loop regarding their matters. The neighborhood is organizing quickly & efficiently. Haven't heard anything about the $ amount you mention.
Posted on 7/5/08 at 12:20 am to The Duffer
quote:
Could anyone give me any advice or sense of direction regarding approximately 1,000 acres, south of I-20/south Webster parish, Sec. 8 and 9, T18N, R9W?
north of Sibley, south of I-20. hwy 371 runs through sec. 9.
use the dnr interactive map. LINK
Posted on 7/5/08 at 1:48 am to tigernorth
JDP is paying $13500 ac. for stuff near intersection of Bert Kouns and Dean Rd
Posted on 7/5/08 at 9:57 am to TigerDog83
have a question for tigerdog83 own property near a encana well being drilled in north natchitoches parish our property is south of the well a couple of miles have been offered money to buy minerals how do you determine what they are worth? also have property in sabine parish 5 miles east of shell well that was drilled no flow rates have been released only gossip.
Posted on 7/5/08 at 12:02 pm to harley1
What is the current rate /acre in the Many area? We have about 1000 acres.
Posted on 7/5/08 at 1:31 pm to tigernorth
What companies do JPD represent?
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