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re: Oil companies drilling on your land in exchange for a percentage of what they find?
Posted on 4/30/18 at 9:41 pm to Mud_Till_May
Posted on 4/30/18 at 9:41 pm to Mud_Till_May
Jed was the original fraker.
0
Posted on 4/30/18 at 9:49 pm to Clyde Tipton
A 640 acre unit is a square mile. 5,280 feet length and width. An 8k ft lateral certainly happens, but it would have to involve 2 640 acre sections or 1280 acres.
10mm drilling cost divided by 1280 acres is 7,812 per acre. He has 10 acres so his share of drilling costs would be just shy of 80k.
I don't know anything about Austin chalk production so I can't speculate on how long it would take to hit payout.
I can say that one of mine in the haynesville that was unleased recovered all drilling costs in less than a year. The other had problems and hasn't paid out yet.
For a small tract like he has going unleased should be considered, especially given how crappy the current lease bonus offers are. Why give them 80% of lifetime production for a 500/acre lease bonus?
10mm drilling cost divided by 1280 acres is 7,812 per acre. He has 10 acres so his share of drilling costs would be just shy of 80k.
I don't know anything about Austin chalk production so I can't speculate on how long it would take to hit payout.
I can say that one of mine in the haynesville that was unleased recovered all drilling costs in less than a year. The other had problems and hasn't paid out yet.
For a small tract like he has going unleased should be considered, especially given how crappy the current lease bonus offers are. Why give them 80% of lifetime production for a 500/acre lease bonus?
Posted on 4/30/18 at 10:06 pm to Beessnax
I see what you are saying. And your right. I’m thinking Haynesville gas wells on section units. I calculated a 40 acre being a 1/16th of a unit.
The Austin Chalk units are bigger than a section, thus the longer than a mile laterals. So that does throw off the math.
These are oil wells. It could be TMS, but everything I’ve heard is Austin Chalk.
The Austin Chalk units are bigger than a section, thus the longer than a mile laterals. So that does throw off the math.
These are oil wells. It could be TMS, but everything I’ve heard is Austin Chalk.
Posted on 4/30/18 at 10:11 pm to Beessnax
quote:
640 acre unit is a square mile. 5,280 feet length and width. An 8k ft lateral certainly happens, but it would have to involve 2 640 acre sections or 1280 acres.
I think laterals have to start and end 330 feet from the unit boundary. I have family land in the Haynesville shale that has been leased for oil and gas going back to the early 1950s. They may exist, but I have not heard of a lateral crossing units.
Posted on 4/30/18 at 10:30 pm to EA6B
quote:
They may exist, but I have not heard of a lateral crossing units.
Quite common now.
Posted on 5/1/18 at 4:57 am to fallguy_1978
quote:
His land is part of the Tuscaloosa Shale
His land is part of more formations than just the Tuscaloosa.
Posted on 5/1/18 at 5:20 am to TH03
quote:
Outside of the $20-30k an acre we were giving out 10 years ago.
Still don’t see how anyone thought that was a good idea
Posted on 5/1/18 at 5:35 am to Clyde Tipton
quote:
These are oil wells.
Do you know what kind of production they are getting? I haven't kept up with it.
Posted on 5/1/18 at 6:03 am to Beessnax
The EOG chalk well is still north of 1,000/day. Not much change since September/October.
Posted on 5/1/18 at 6:07 am to thegreatboudini
I got $310 and ac plus 23 1/2%. Lower Pointe Coupee. Going rate here.
Posted on 5/1/18 at 6:17 am to Clyde Tipton
eta: nvm
This post was edited on 5/1/18 at 6:53 am
Posted on 5/1/18 at 7:39 am to TDcline
Friend of mine got 400k for 3 year lease on his farm in ND. The time has passed, and they never drove on his property. Oil glut slowed everything.
Apparently, competition was hot to put money down all over.
Apparently, competition was hot to put money down all over.
Posted on 5/1/18 at 8:06 am to TDcline
My ex's grandfather owned a big chunk of "worthless" marsh land, and after he died they put natural gas wells on the property. My ex ended up inheriting 1/9th of it (her mom had passed as well, so she and her brothers each got 1/3 of their mom's 1/3), and she was receiving checks from $20,000-$40,000/month for a couple years, then smaller amounts for a while after that. During the peak period of the first couple years, she pulled in nearly close to a million. A good hit can certainly pay off, even though the oil/gas company is getting the lion's share of it. Sadly, she blew it all (much of it on drugs) and didn't have a thing to show for it just a few years later.
This post was edited on 5/1/18 at 8:08 am
Posted on 5/1/18 at 8:53 am to thegreatboudini
quote:
The EOG chalk well is still north of 1,000/day. Not much change since September/October.
You are incorrect as it's fallen way off to approximately 260 BOPD in February per state production numbers. Doesn't look like this well will come close to approaching payout. Jury is still out on if the Karnes County Texas Austin Chalk approach will work in Louisiana. It might be similar in that it works in a few spots but not across the trend continuously.
Posted on 5/1/18 at 9:07 am to TigerDog83
I just looked on DI and I stand corrected. Sorry about that. I worked 2 chalk wells in Karnes county back in September that are doing well that I must have gotten confused with.
Posted on 5/1/18 at 9:27 am to Beessnax
Aren't you worried about the fast decline of Haynesville wells? You missed out on the best year of production the well will have.
Posted on 5/1/18 at 9:32 am to TDcline
quote:
They offered my parents 20% of what’s found. That seemed kinda too low to me
That's about right. Actually a 3/16 royalty was more the norm so your parents got a pretty good deal. Most in the Permian Basin get about 1/4 on proven rseves
Posted on 5/1/18 at 9:43 am to TDcline
My family has 120 acres in Rapides Parish & signed a new contract a few weeks ago. I don’t know how much royalties the oil company offered or how much per acre for the lease but I was told that the land would be drilled on.
Posted on 5/1/18 at 9:54 am to White Bear
quote:
bullshite. The owners can sell the minerals via a deed, they damn sure own them.
They sell the mineral rights.
quote:
If the owners wanted to extract the minerals themselves they have every right.
Yes but they don't own the actual minerals until they are brought to the surface.
Try not to speak on things in absolutes when you don't know what you're talking about.
Posted on 5/1/18 at 9:55 am to EA6B
quote:
They may exist, but I have not heard of a lateral crossing units.
We did it all the time in the haynesville shale.
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