Mineral rights

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Apparently there's a new shale field about to be drilled or explored

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Where is this located?

Caddo Parish in the Greenwood-Waskom Haynesville shale field.

I'll buy them from you.. what are they offering?

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Do the math, maybe 8 wells per section 6-10 billion cubic feet per hole. Dont sell shite.

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I have 12 acres in the Haynesville shale with 3 wells that are only half in my unit. Last year they paid $67,000 in royalties, and a lot of that gas was sold at $2.75-3.00, today it’s over $8.00 I get a couple of letters a week from “lease hounds” wanting to buy my mineral rights.

I talked to Blue Dome and they are holding a $14,000 check for my mom. I don't know how long they've been drilling.

If your parents own the mineral rights, do you know whether they signed a contract with a land man representing Blue Dome or any other company? If they did, that contract will stipulate what the upfront lease money was and it will show what percentage royalty interest they agreed to, I’m not sure about now but 15 years ago when the Haynesville was just busting out, it was common to get several thousand per acre in lease agreement funds and 20 -25 percent royalties per acre.

If they never signed a lease contract, then they would probably be considered Working Interest Owners (WOI) in which case the drilling could begin without a lease agreement and your parents and any other land owners in the designated well section are considered co-owners in the well and they own full royalties on their unsigned land but they have to wait till the well is drilled, worked over, connected and starts producing before they even start getting reports of the wells potential.

Then they have to wait till the well has reached what the drilling company called “payout”, the point where the well has produced enough gas to fully pay the accumulated cost of the well, usually in the 10’s of millions. Once the well is paid out, they are supposed to report to unleashed (WOI) owners and set up method to start paying for their minerals.

This can take 2,3, 5, 10 years or longer but when they are paid, they get full amount per acre instead of 20 or 25%. A lot depends on the company that owns the lease and is producing it, I’ve always had to deal with Chesapeake and they’re hard to deal with and most comparisons over the years shows that they pay roughly 1/3 to 1/2 as much for gas at delivery than other companies in the Haynesville.

I’d be questioning them (Blue Dome) as to what the $14,000 check amount they said they are holding for your mom is for, sounds like upfront money, which if it is, they should be able to produce a copy of a signed lease agreement that your parents signed. If there is a lease then y’all are an active part in any and all wells drilled in your section so I would hold and and not sell to lease buyers, they know the pay out is a to come and are trying to fool y’all and others into selling your interest whic h will most likely be pennys on the dollar compared to what you’ll have coming.
These guys aren’t idiots and they’re really not even speculators, they have landmen and agents that are working the leases and monitoring how wells are progressing and they’re getting positive vibes from their research that the wells will be productive, thus let’s run out here and try to buy these folks rights up before they start getting checks and it’ll be their lose and our gain!