Oil & Gas Exploration in Pointe Coupee Parish

I have been involved in the deep Tuscaloosa Gas Play in Pointe Coupee for over 30 years. I would like to be involved in the current Austin Chalk "Play" but it doesn't look promising. Here's why. Many years ago, I was told that major product manufacturers (like Proctor Gamble, etc.) have in the past "Tested" new products in Pointe Coupee Parish because, I was told, "the folks there are as tight with their money as bark on a tree and so if a product sells there, it will sell anywhere in the country". Be that as it may, or may not, because there are always exception to every rule, it's so tough to obtain Leases to Drill Oil/Gas Wells in that area that Exploration Companies are turning away from the area for more accommodating folks who'd like to have Royalty Checks from Oil/Gas wells. I've also found this to be the case generally.

Here's some hard evidence for this belief. EOG has completed what is referred to as "Prime" Austin Chalk production in Avoyelles Parish and their huge "Lease Block" includes Northern St. Landry Parish but pulled-up and stopped Leasing at the Pointe Coupee Parish boarder with those two Parishes. In other words, they've indicated they're not interested in Leasing in Pointe Coupee Parish. I believe they stopped Leasing just West of the Morganza Spillway. That's not good for Pointe Coupee Parish folks. Naturally, there may be one or two exception in the case of very large tracts of Land when an owner offers the entire tract at a signing-bonus neighboring owners in Avoyelles and St. Landry Parishes landowners have agreed to.

The other problem Exploration Companies have is with some Attorneys. I've dealt with attorneys over 55 years of business activity and I have no problem whatsoever with Lawyers checking any agreement for conformity to applicable LAWS. I often point-out to lawyers that they attended Law School NOT Business School. So while they may be versed in Oil and Gas Laws they are not qualified to negotiate financial terms of an Oil & Gas Lease and especially because a signing bonus fee is just that, a "signing bonus" and an arbitrary sum that has nothing to do with the VALUE of the land's minerals UNTIL A WELL IS DRILLED, COMPLETED AND EVALUATED !

Therefore, since I practice what I preach, I have proposed paying a "signing bonus" upfront and IF A WELL IS MADE PRODUCING COMMERCIAL VOLUMNS OF HYDROCARBONS FOR A PERIOD OF 6 MONTHS, the landowner is naturally entitled to their Royalties on that production PLUS an additional payment of 100% to 200% of what the "signing bonus" was.

Tom Gandolfo