Oil & gas discussion group for those interested in Wilkinson County, MS. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
Anyone having any idea of activity in Wilkinson county feel free to advise
1/5 and 200 a acre
Recently (December) we have been approached by a landman who has offered $200/ac for 3/yr lease and $200 for a 2/yr extension plus "Shut in"at $10/ac and 1/4 royalty on production. Has anyone seen anything better than this recently?
IN CASE YOU HAVEN"T SEEN THIS.............WELL TEST RESULTS
BATON ROUGE, La. — Energy companies are reporting encouraging test results from the Tuscaloosa Marine Shale across the span of central Louisiana, the state’s natural resources chief says.
According to The Advocate, Devon Energy Corp. has reported an initial test of 120 barrels a day in its first completed horizontal well in East Feliciana Parish. Indigo Minerals LLC has reported that its Rapides Parish well’s initial production was 540 barrels a day.
Department of Natural Resources Secretary Scott Angelle said there is more work to be done to determine how far petroleum explorers will go with investments.
Amelia Resources LLC president Kirk Barrell said 10 to 20 wells will be needed before the industry can best determine how to produce in the formation. The shale spans the central part of the state. Researchers have said it may contain as much as 7 billion barrels of oil.
Companies will need to determine how many stages of a process called hydraulic fracturing, or fracking, are needed and how best to perform that task, Barrell said. In fracking, drillers force millions of gallons of water, sand and chemicals under high pressure into the formations to make cracks in the shale. The sand props the cracks open, releasing the oil.
The process has been questioned by environmentalists who fear groundwater contamination.
While a well’s initial production rate is important, another key to measuring performance is the first year of the well’s production, Barrell said.
In general, a shale well’s production drops 70 percent to 80 percent over the first 12 months, Barrell said. The bulk of the well’s production occurs during the first two to three years of operation.
Indigo Minerals and Devon have each leased more than 240,000 acres in the formation.
Devon recently reported that it is near the target depth on another Tuscaloosa Marine Shale well in Tangipahoa Parish, and the company has obtained permits for two wells in the formation in East Feliciana Parish.
Encana Corp., one of the major players in north Louisiana’s Haynesville Shale natural gas formation, also announced it has reached target depth on a horizontal Tuscaloosa Marine Shale well in St. Helena Parish. But Encana has not yet reported initial production figures.
This article, in case you haven’t seen it, is part of the “big” picture relative to where our country is heading in quest for energy independence and in flight from its dependence on foreign oil. Isn’t that exciting that we are finally heading away from the Middle East and spending those daily billions locally? What’s even more exciting is that we, in the Tuscaloosa Marine Shale, are part of that “big” picture. Hopefully, everyone involved in this whole process will prosper!
Oil production from the Eagle Ford formation in Texas will increase to 421,000 barrels a day by 2015, said John O’Shea, chief executive officer of Tradition Midstream LLC.
“This crude is coming on like gangbusters,” O’Shea said during a talk at the Argus Americas Crude Summit in Houston. “Domestic crude is going to displace imports over the next decade.”
North American oil supply will grow 1.7 percent annually over the next 25 years and imported crude could fall 47 percent in 2012, according to O’Shea.
If you really want to know if there is leasing going on in your parish or county, there's no better way than to pay a short visit to your Chancery Clerk's office at your local Courthouse and you will find out very quickly whether or not there is anything going on in your area.
I'll bet that there is plenty going on if you live or own property in the Tuscaloosa Marine Shale area. Wilkinson County is one of the "hot" ones. Wanna be sure....visit the courthouse and see the activity
What's going on here folks is very simalar to what happened at Orlando FL in the mid 1970's when Disney was buying up land, in small chunks, using multiple real estate agencies, at distressed prices until they had filled their needs and then announcing their building of Disney World!
You not going to hear much about this fabulous discovery until the land is nearly all leased.
This is exactly what has happened across central Lousiana over the past two years when companies like Devon, Densbury, Amelia, Indigo and scores of others have been working daily to accumulate leases for $175 to $185/acre. These leases, containg in excess of 2.5 million acres have been recently sold to the Chinese, French and other governments and foreign companies for $5,000 per acre PLUS other extremely valuable considerations. Wow! Huh?
The landmen started six months or more ago moving into Mississippi, the last of the unleased mineral rights. They work the land quietly, methodically and with well organized mapped out plans. Its not unusual to see a team of 8-12 landsmen from one leasing company working out of one courthouse.
When you go to the courthouse you can chat with any of these landmen. They will be happy to talk to you. Talk to as many as possible!
Don't give your land away, friend, to some oil company in order for them to make a fortune from it. Share it with them!
We had so many landmen working out of one of our nearby courthouses that there nearly was a riot and the sheriff's deparment had to be called in.
Be vigilant, smart and move quickly or very slowly depending on what your instincts tell you...Good luck!
Bob Buie Sr
Stone Energy Enters The TMS Play
Several sources indicate that Stone Energy has obtained leases in the Tuscaloosa Marine Shale Play in Wilkinson County, Mississippi. The company has not made any announcements regarding the play. The yellow outline on the map below is where the company is believed to be focusing their leasing efforts. It's been reported that the company signed a lease on a large tract with Crosby Land & Resources.
Tuscaloosa Marine Shale Play - Rumored lease buying area of Stone Energy (Yellow)
New Fracking Product ...Great News to combat the EPA
The EPA has approved a new pH neutral fracking solution that is "Green" friendly. It sounds like this could be the solution to one of the major environmental problems threatening the path to energy independence
........and to our POCKETBOOK!!!
WHAT DID YOU GET PER ACRE? Read this............
Devon Energy and Sinopec (China) have inked a joint-venture (JV) deal worth $2.2 billion for a 1/3 interest in Devon’s acreage across five new venture plays. Devon is selling an interest in 1.2 million net acres for a little more than $5,000 per acre across several emerging plays: Tuscaloosa Marine Shale
Has anyone heard if Encana has any locations planned north of hwy 24, around Willie Neyland Rd.? We have leased to them since January 2012.
Just received an offer for $250 acre 3/16 royalty 5 yr lease.
Does anyone know what, if anthing is going on wih the Crosby 12H-1 well?
Any drilling activity in Wilkinson co. at the present time? We’re 1 year into our three year lease, and were told of Encana having an aggressive drilling program. We haven’t had any replies from our questions about their plans from them.
Just found out that I had an offer from BCF Minerals LLC that reads like this "$200 cash bonus per net acre with 3/16 roality on a 3 year Primary Term with a 2 year Optio to Renew at $120 cash bonus per net mineral acre. On non-binding estimate of the total lease bonus for your mineral interest comes out to $XXXX.XX." It was in a bunch of papers I found after my father passed away and was dated January 9, 2012. It was for our 24 acres. I guess we missed the boat and need to wait for a possible next time.
There was also a hand written note from a Joe Pierce from a company called MLG group, representing ENCANA wanting to talk about leasing. Any suggestions as to whether or not I should try and contact them and start up a discussion about leasing? Or would it be best to wait for other offers down the road.
Any drilling going on at present, or any production figures, well permits, or new information for Wilkinson co.?
Any new info on the new Goodrich Oil TMS wells that have been drilled in Wilkinson Co. MS. Also any new info on what the offers for mineral rights and royalities are going for now?
@ R. McGraw. Besides what you can find here, there are several articles that can be found on Google, by searching ‘Goodrich Petroleum, wilkinnson Co. Ms.’ Also, I found some good info on Encana’s partnership with Goodrich, and the delays in new activity in the area could be due to waiting on the now past July 1st tax break on new wells. This, along with the new CEO appointed by Encana, could mean an upturn in activity in the area. Some may say I’m being a little too optimistic, but working in the oilfield for 40 years, seeing new fields devevolped from scratch, my glass is half full on the next years activity ramping up. It doesn’t hurt that since signing our lease, we’ve been approached to sell our mineral rights outright a couple of times, with the offers going up, each time. Good luck to us all. Chris
I recently leased some property Section 25 T2 R2W and Sections 4&5 T2 R1E. I had contacted all the major players and they either offered me low rates and or were not really interested. I leased through a contact to an independent outfit and right as I was finalizing the lease I was contacted by different landmen wanting to lease for the bigger companies. I was offered $250 and $275 bonus per acre and less than 20% royalty.
I had a little bit better offer than that and had already agreed so it did not matter. Before I let on that the property was already leased one of the landmen let me know that there were several units that were going to be applied for and others being planned in Wilkinson county.
Supposedly there are several good production reports set to come out soon, hopefully that will spur some interest.
A quick aside, if you are a McGraw from the McGraw's from around Hiram McGraw Rd. outside of Woodville, we are likely distantly related (I don't know many folks besides a few distant relatives in Wilkinson county so there might be many McGraws, so do forgive me if not).
I hope this information helps.