I have recently been approached about leasing Bossier Parish lands and was wondering where I can see activity on or around Section 15-T17N-12W
I am not familiar with how to use the GIS mapping feature for Louisiana and appreciate any thoughts or suggestions with respect to reasonable bonus/royalty on a 640 acre tract in which I own 5 or 6 net acres.
My suggestion would be to start at $2000/acre bonus with 20% royalty and a 3 year term, with no post-production costs. You’re in a good area with active permitting and drilling within two miles of your acreage and a good likelihood of being drilled soon after leasing. If those initial terms don’t work, back down off the bonus before backing down on royalty or post-production costs.
I have the completion date on each horizontal well on the map below to show how recent offset activity is (completed this year right next to you!).
Also, I’m guessing the active gas well is in a unit that does not include your acreage? I filtered out all the shut-in/P&A’d wells, but here’s a zoomed in version with all of them on there.
from old division orders, our acreage is as follows:
Tract No. 2
Individual A and Individual B, jointly - 1/8 x 26.2/640 x 1/8 = .000639R.I.
West Half of Southwest Quarter of Northwest Quarter (W1/2 of SW1/4 of NW1/4) South of Red Chute Bayou, less the bed of Red Chute Bayou: Southeast Quarter of Southwest Quarter of Northwest Quarter (SE1/4 of SW1/4 of NW1/4) of Section 15, Township 17 North, Range 12 West, containing 26.2 acres
Tract No. 11
Individual A - 1/16 x 283/643 x 473/640 x 1/8
North Half of Northeast Quarter (N1/2 of NE1/4); Southwest Quarter of Northeast Quarter (SW1/4 of NE1/4); Northeast Quarter of Northwest Quarter (NE/14 of NW1/4); Southeast Quarter of Northwest Quarter of Northwest Quarter (SE1/4 of NW1/4 of NW1/4); that part of North Half of Northwest Quarter of Northwest Quarter (N1/2 of NW1/4 of NW1/4) lying East of Red Chute Bayou; Southeast Quarter of Northwest Quarter(SE1/4 of NW1/4); Northeast Quarter of Southwest Quarter of NW Quarter (NE1/4 of SW1/4 of NW1/4); Southeast Quarter of Southeast Quarter (SE1/4 of SE1/4); Northeast Quarter of Southeast Quarter of Southwest Quarter (NE1/4 of SE1/4 of SW1/4): all in Section 15 Township 17 North Range 12 West, less the bed of Red Chute Bayou, containing 283 acres.
So this division order covered part of section 15 and part of Section 22. We have been getting paid based on an old lease with a 1/8 royalty.
We are now being told that they want to enter into a new lease and pay us a higher royalty which is causing me to wonder what the real motive is.
I received a letter regarding application for Public Hearing to consider applicant to drill one cross unit horizontal unit well and five cross unit horizontal alternate unit wells.
We are getting paid on Freedman 15-1 Alt, Freedman 15-2 Alt at the 1/8 royalty.
I appreciate any thoughts you may have
Here’s what I think might be happening. It looks like your original lease might be expired due to inactivity. Are you getting royalties from any wells in this section right now? There’s only one producing well in the section and it’s not on your acreage (but the lease is the thing to check. What acreage is considered part of the lease?).
I’m not familiar enough with Louisiana-specific rules and regulations to know this for sure, but they’re probably legally obligated to re-lease your acreage in order to drill and produce again. Is it Aethon or another company?
I roughly mapped your acreage (for kicks…you piqued my interest ). I think this is right…that was quite a doozy!
Aethon sent me a letter dated 9/19/19 saying they had acquired and assumed properties from Weatherly Oil & Gas effective 7/1/2019. I have never received payment from Aethon. However, I received a preapplication notice regarding Haynesville Zone, Reservoir A, Sligo Field, Bossier Parish, LA where they were applying for a public hearing to consider evidence…to drill, designate and utilize one (1) cross unit horizontal unit well and five (5) cross unit horizontal alternate unit wells for HA RA SUDD and HA RA SU55
In April 2020 I was paid by Weatherly (debtor in possession) for Freedman 15 1 Alt for 2017 adjustments that amounted to negative $0.01 and Freedman 15-2 Alt for June 2018 thru April 2019.
The leasing agent for Aethon said they would not even submit my counter unless I agreed to 20% royalty subject to proportional costs. I am not excited about that as I suspect the cost burden would make this about at 12% cost free royalty.
Is it dangerous to simply not lease and “go down the hole with them?”
While I welcome the bonus, it doesn’t make any real difference to me.
This topic was automatically closed after 90 days. New replies are no longer allowed.