West Feliciana Parish Lease Question

I have been offered a lease by Trinity Petroleum, L.L.C. for my 70 acres:

Are there other companies leasing in WF Parish I could contact?

Thank you,

James

 

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Replies to This Discussion

Permalink Reply by Steve on October 28, 2011 at 2:12pm
Yes there are others who have been leasing but I do not know which ones are active at the moment. Here are a few that were recently leasing : Devon, Encana, Charleston, Merlin, Goodrich, Sanchez and possibly Chesapeake. I haven't seen your lease form but I recommend you get someone qualified to review your lease and add an addendum that better represents your interest . The standard lease forms being offered in this area are lopsided in favor of the oil companies. An important feature is the royalty clause for example - you should ask for a no cost royalty. Bonuses have been low at around $225 per acre but a 20% royalty has been the norm and is not bad. I did see where Charleston paid the State 22.5 % last week for WF land at lease auction. If some of the currently being drilled wells are very successful you could see bonuses jump to $5000 per acre almost overnight - my opinion only - if they aren't successful wells then they may drop to $0 overnight - my opinion again.
Permalink Reply by Skip Peel- Independent Landman on October 28, 2011 at 2:24pm
The best way to determine what companies are actively leasing in a particular area is to make a trip to the parish clerk of court office.  Most clerks maintain a "Day Book".  It lists by date all instruments recorded in the public record.  Leases are recorded in batches so you may have to look back some days or weeks.  If you pull one of the recorded leases you can get the lessee's mailing address and view the terms of the lease except for bonus paid as that is not included in a lease.  A lessee may record a Memorandum Of Lease which recites only the bare bones specifics of the lease omitting royalty and a full listing of the lease language.  If the clerk does not maintain a Day Book, tell the staff what you are looking for and ask for instructions on how to search for recent leases.
Permalink Reply by James F. Jackson on October 28, 2011 at 2:28pm

James

 

Where is your land located in WFP?  Two other companies left out in Steve's list are Anadarko and Graves Oil & Gas.

 

 

Permalink Reply by James R Lathrop on October 28, 2011 at 3:30pm

I am very grateful for all replies.

My property is part of Fairlawn in Weyanoke. It is off Hwy 66 on the Greenwood road.

 

Thank you to all,

 

James

Permalink Reply by Kirk Barrell on October 29, 2011 at 9:49am
James,
We might be interested.
Send me your legal description to kabarrell@gmail.com
Permalink Reply by Steve on October 30, 2011 at 9:51pm
Other landowners I know personally in WF have been contacted by Trinity  in the past couple of weeks-Sage Hill Road (near Bains), Wakefield(near HWY 61) and in Weyanoke. Anyone know who Trinity represents? Also heard of a second Encana well site being planned in WF - off the Jackson to Woodville road, plus 7 additional sites under consideration - several near the BOE and Anderson well locations in Amite County. The TMS will see a good increase in activity beginning in early 2012 according to my sources. We need a good well or two to make bonuses and royalties rise. Things are still looking positive at this point. Drill Baby Drill!
Permalink Reply by James R Lathrop on October 30, 2011 at 10:13pm

Steve,

I appreciate your optimism. I like your earlier post that bonuses could go to $5000. I am truly a novice at this stuff, but this blog is helping me learn.

Thank you,

 

James

Permalink Reply by Steve on October 31, 2011 at 7:35am
To confess : It wasn't exactly my idea about the $5000 per acre bonuses. I heard that from Goodrich Petroleum's CEO,CFO,COO??? in their recent(Oct.) presentation to analyst. They were expressing their good fortune at having acquired lease holdings in the TMS at an average of around $175(?) per acre because( paraphrased) "if some currently being drilled wells are successful the bonuses would go up to $5000 overnight". If other plays are an indication- such as the Haynesville and the Eagleford - a big success would skyrocket bonuses. Not to make your head spin but, they can reach 30K per acre - but don't count on that at this point. It is wayyyy... to early to get greedy. The operators have to see some real results for anything more to happen. One of the reasons they are taking a risk at all is the low cost for leases at this point. But, they are "bragging" to investors about their low cost acquisition of acreage. They did the same in the other shale plays that were successful.
Permalink Reply by Skip Peel- Independent Landman on October 31, 2011 at 8:13am
Guys, just to set the record straight, the bonuses in the hay day of the Haynesville were not driven by well results.  They were driven by competition for leasehold.  Some good completions surely will not hurt the lease offers in the TMS. However do not expect anything like the big Haynesville numbers unless multiple companies get in a bidding contest.  Having said that I would think that $5000/acre is possible but likely only for larger tracts in very prospective locations.  Also don't let the numbers behind that dollar sign cause you to loose focus on the other lease terms.  If you read the current Haynesville discussions you will find that many rue not paying attention to issues such as no-cost-royalty and shut-in payments and term.  I always counsel mineral owners to get their lease language accepted first and leave negotiating the bonus to last.  There is a reason landmen like to put bonus front and center when making offers.  It's actually far down the priority list of lease terms in proven plays.
Permalink Reply by James R Lathrop on October 31, 2011 at 8:54am

Everyone here is very helpful to me.

I think I am going to wait a bit to see how things develop in West Feliciana Parish. My 70 acres may not be big enough to attract high dollars, but it may be worth more than currently offered by Trinity Petroleum, Inc.:

$225/ac. for 3yr. Lease

$250/ac. for 2yr. Option to extend

1/5th Royalty

 

I do appreciate Trinity petroleum, Inc. making the offer; however. Mr. Ryan McMaster has been very kind, clear, and follows up quickly. He has presented no pressure and seems to me an honest agent for Trinity. In case anyone would like to contact him: 

ryankmc@gmail.com

Permalink Reply by Skip Peel- Independent Landman on October 31, 2011 at 9:01am
James, for those willing to be patient, I think some successful well announcements will push bonuses for acreage of your size into the $1000-$2000 range with modest competition for leases.  I don't have a problem with 3/2 lease terms but I think that a quarter is the right royalty percentage for an oily play.  Keep in mind that trying to time the height of bonus offers is like trying to time the stock market.  You'll never know the top until it has past.  Get the beneficial and protective lease clauses as they will stand you in good stead long after the bonus money is spent and forgotten.
Permalink Reply by Doug on March 7, 2012 at 4:51pm

if not an imposition -  would you elaborate a bit on "beneficial and protective lease clauses" your post dated  31OCT11.  In advance, thanks.  doug

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