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Message
re: Haynesville Shale
Posted on 6/5/08 at 2:25 pm to TigerDog83
Posted on 6/5/08 at 2:25 pm to TigerDog83
quote:
For a good well, how much annual income are we talking about it kicking off?
Well, most companies are quietly assuming 5 BCF of gas (Billion cubic feet) plus per well on 60 acre spacing (So about 7-8 wells per section of land). With gas trading today around 12.00 per MCF, each BCF is worth approximately 12 million dollars at todays prices. Assuming again 12.00 per MCF gas prices, and a recovery of 45-55 BCF per section (Per Petrohawk) that is 600 million dollars plus in revenue per section to the oil/gas producer. Take out 7-8% for state severance taxes, and multiply that by a royalty amount of 25%, and you get about 150 million dollars per section to the landowner (royalty owner). This will vary by section and location, and of course gas prices themselves vary, but it would not be surprising to arrive at around $200,000 per net mineral acre in royaties over the next 20-30 years.
This post was edited on 6/5/08 at 2:27 pm
4
Posted on 6/5/08 at 2:26 pm to TigerDog83
quote:
How does Kingston/Keatchie/Grand Cane look?
Money in the bank.....dead center in the play. Have you leased already there? There is already a good deal of production in that area from the Cotton Valley formation.
Posted on 6/5/08 at 2:29 pm to TigerDog83
Can you post a link to a good township and range map of Bossier Parish? Thanks. I still can't get over the possible recoverable gas amounts that the Petrohawk well is showing.. $200,000 per acre, that is ridiculous! Anybody who owns land in this play and votes for Obama will need to have their head checked unless they want to pay millions more to Uncle Sam!
This post was edited on 6/5/08 at 2:40 pm
Posted on 6/5/08 at 3:18 pm to TigerDog83
What do you think the prospects are for land just to the southwest of Benton? Like Festervan's land on the west side of Benton road just across from Benton High school.
Posted on 6/5/08 at 4:24 pm to TigerDog83
quote:
Well, most companies are quietly assuming 5 BCF of gas (Billion cubic feet) plus per well on 60 acre spacing (So about 7-8 wells per section of land). With gas trading today around 12.00 per MCF, each BCF is worth approximately 12 million dollars at todays prices. Assuming again 12.00 per MCF gas prices, and a recovery of 45-55 BCF per section (Per Petrohawk) that is 600 million dollars plus in revenue per section to the oil/gas producer. Take out 7-8% for state severance taxes, and multiply that by a royalty amount of 25%, and you get about 150 million dollars per section to the landowner (royalty owner). This will vary by section and location, and of course gas prices themselves vary, but it would not be surprising to arrive at around $200,000 per net mineral acre in royaties over the next 20-30 years.
83, I hate to pester you, but can you make this a little more clear. I'm confused between "sections", "spacing" and "acre". How big is "one section"?
Also, do you think Shreveport-area lawyers are conflict free in assisting landowners, or are they in the pockets of the big companies?
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