Haynesville Shale

[backhoeboogie]

I thought it was nuts over here with the Barnett Shale. Heck, that wasn't nothing. The land men are all over me about the Haynesville now. My holdings are right there near the big hit in Harrison, County.

Just call me Jethro. I may need to move to California to get away from these blood suckers. Well, on second thought, it aint that bad - yet.

 

[TexasBred]

Boogie....my younger daughter is a "lease hound" over there. If a real cutie calls on you it could be her. She's with XTO Energy.

 

[Central Fl Cracker]

http://www.thebarnettshale.com/

 

[backhoeboogie]

If a real cutie calls on you

No such luck.

I'd discuss things with XTO. Mostly I am sick of the fly by nights. I hang up on them frequently. I am standing on a 25% royalty with no production or delivery costs. After that we talk chum money. They call it bonus money but it is the dollars used to bait in the poor folks for low royalty. Chum money is more appropriate for the blood suckers.

I let a Harrison County lease today with Chesapeake. I hope it is half as good as Hood or Somervell County leases. All reports indicate it should be significantly better.

 

[Jogeephus]

Well if it all works out you know you can count on me if you need any high dollar heifers to increase your herd size. I'm sure you'll be wanting some of my $20,000/head stock and don't worry about fuel money cause when you buy a load of these I'll deliver them at no cost to you. ;-) Good luck with it.

 

[Horticattleman]

Well if it all works out you know you can count on me if you need any high dollar heifers to increase your herd size. I'm sure you'll be wanting some of my $20,000/head stock and don't worry about fuel money cause when you buy a load of these I'll deliver them at no cost to you. ;-) Good luck with it.

Just in case the trailer has some room, stop by my place and I'll finisher off!

 

[Jogeephus]

Well if it all works out you know you can count on me if you need any high dollar heifers to increase your herd size. I'm sure you'll be wanting some of my $20,000/head stock and don't worry about fuel money cause when you buy a load of these I'll deliver them at no cost to you. ;-) Good luck with it.

Just in case the trailer has some room, stop by my place and I'll finisher off!

Will do!! You know its soooo goood to have friends who recognize the value of good stock and don't mind paying a fair price for quality.

(BTW - I might need to borrow some fuel money for the ride out there but should be fine on the way back solong as he don't give us one of them bogus money orders.)

 

[TexasBred]

If a real cutie calls on you

No such luck.

I'd discuss things with XTO. Mostly I am sick of the fly by nights. I hang up on them frequently. I am standing on a 25% royalty with no production or delivery costs. After that we talk chum money. They call it bonus money but it is the dollars used to bait in the poor folks for low royalty. Chum money is more appropriate for the blood suckers.

I let a Harrison County lease today with Chesapeake. I hope it is half as good as Hood or Somervell County leases. All reports indicate it should be significantly better.

Boogie...they still trying to get folks to sign for a couple hundred bucks bonus and 1/6 royalty with veiled threats that you will be "left behind" if you do not sign.

 

[backhoeboogie]

If a real cutie calls on you

No such luck.

I'd discuss things with XTO. Mostly I am sick of the fly by nights. I hang up on them frequently. I am standing on a 25% royalty with no production or delivery costs. After that we talk chum money. They call it bonus money but it is the dollars used to bait in the poor folks for low royalty. Chum money is more appropriate for the blood suckers.

I let a Harrison County lease today with Chesapeake. I hope it is half as good as Hood or Somervell County leases. All reports indicate it should be significantly better.

Boogie...they still trying to get folks to sign for a couple hundred bucks bonus and 1/6 royalty with veiled threats that you will be "left behind" if you do not sign.

I let one lease today, on my terms. WAHOOO!!! I had to sign confidentiality agreements so I cannot disclose the terms. The chum money was more than I have ever been offered in the past and way more than what I received over here in the Barnett. My royalty percentage and protection clauses are perfect.

I am going to play poker on other pieces. If they hit more wells like that one they hit, the price will go up. If they hit mediocre wells, the price will go down. Even if they are down, it will still be awesome.

 

[L.A.]

Congrats! I alwas thought you had gas. ;-)

 

[Arnold Ziffle]

Good for you BHB. Hope you got lots of nickels. My clients tell me that Chesapeake, Petrohawk and probably others are spending like crazy for leases in the Haynesville. Have heard of folks getting $7,000 to $10,000 bonus per mineral acre with 25% royalty. Probably even more the closer they are to the sweet spot. Barnet, Fayetteville, Haynesville in Tex-Ark-La and now Bakken in N. Dakota --- sure makes me wish I had some shale play acreage.

 

[backhoeboogie]

Good for you BHB. Hope you got lots of nickels. My clients tell me that Chesapeake, Petrohawk and probably others are spending like crazy for leases in the Haynesville. Have heard of folks getting $7,000 to $10,000 bonus per mineral acre with 25% royalty. Probably even more the closer they are to the sweet spot. Barnet, Fayetteville, Haynesville in Tex-Ark-La and now Bakken in N. Dakota --- sure makes me wish I had some shale play acreage.

Your hearsay is fact. My piddly cotton patch wells are around 10,600'. The pugh clauses in my leases allowed me to let properties 100 feet deeper than the deepest well, once existing leases lapsed. The Hayesville is around 13,000'. So I was only leasing the bottom end (below 10,700")

Some of my aunts and uncles let theirs for $250 an acre and 20% with the old lease holder and they would not listen to me. The land man stroked their ego, bought them dinner and told them I didn't know the business. He drove a wedge into the family. One old uncle hung with me as did my siblings and cousins. It gave me a bigger bargaining chip.

After 5 years of playing in the Barnett, I know enough about the business to know that I don't know enough. But I have a BIL petro attorney and I have a cousin on the other side who is in the business. That is why I had the pugh clause in the first place.

The aunts and uncles that went against me lost just over $3/4 million and 5% royalty too. It breaks my heart. They could use the nickels. The land man swindled them.
He convinced them that they drove a hard bargain at 20% and $250.

If they hit more hot wells closer to properties I have not let yet, the price of poker will go up. I don't own any of the land in those plays, only minerals. I am going to sit tight and keep hanging up the phone when the land men call.

Arnold, if I were letting the cotton valley AND the Haynesville below that, There is no way I'd accept 25% and the numbers you stated.

 

[Calman]

I thought it was nuts over here with the Barnett Shale. Heck, that wasn't nothing. The land men are all over me about the Haynesville now. My holdings are right there near the big hit in Harrison, County.

Just call me Jethro. I may need to move to California to get away from these blood suckers. Well, on second thought, it aint that bad - yet.

BHB I just can't picture you leaving Texas,especailly going to California.

Cal

 

[TexasBred]

Boogie....when you refer to the "big hit"....what kind of daily or monthly production are you talking about?

 

[Central Fl Cracker]

Hey Jed
When are you,Granny and Ellie May packing up the pick up to head West.

 

[backhoeboogie]

Boogie....when you refer to the "big hit"....what kind of daily or monthly production are you talking about?

I am referring to the Penn Virginia (PVA) hit, Harrison County. There are varying reports on it all over the net. There are many horizontals now permitted north of there (closer to most of my holdings). There is nothing as big as the PVA hit anywhere near me in the Barnett - and the Barnett has been pretty sweet thus far.

I let out two leases. I intend to sit tight on other holdings and that is a gamble

 

[TexasBred]

Pretty good little well. Do they have enough information yet to know if production falls off like the Barnett Shale or does it hold like the Bossier Sand? Our Bossier Sand well is falling some but still roaring like a 747.

 

[backhoeboogie]

They don't have any way of determining the capacity of many of these. There is not enough pipe lines to carry the volume.

Barnett fell off for me to about 35% or the initial production and then flatlined steady. If the Haynesville does that, I am sitting pretty. If it does better, that is all the better.

 

[backhoeboogie]

BTW the Bossier Shale and the Haynesville are pretty much all the same thing from what I understand. Bossier sand, Cotton valley and all the other terms for the old verticals differ.

 

[ga. prime]

Got no shale, but I'm standing on some serious sandstone deposits here.