Posted by DeSotoDude on August 10, 2008 at 3:05pm in Lease Bonus $$$

    No! Nobody in south Caddo, south Bossier, DeSoto or Red River should sign for less than $20,000/acre/25% and then only if you are a small landowner

    in an urban/subdivision situation.

    Anyone non-urban with more than 50 acres in these parishes should get more than that based on size, etc. For example, see July 8 auction of 

    DeSoto Airport ( 11 N, 14 W) of 1045 acres at $27,500/27.5%. The next auction results will be made public August 13.

    Since that auction, you have had the following announcements: ECA announced 14n, 11 W well at 14 mmcfd; CHK announced the Milton Crow

     well at 14 mmcfd; HK announced Elm Grove well at 16.8 mmcfd and Hutchison well at 16.7 mmcfd; PVA announced the Fogel well had produced

     250 mmcf over 50 days. Folks, these wells' IP rate is 4X the Barnett Shale IP rates.

    On the August 1 conference call, CHK CEO announced that the Milton Crow well was the "best shale well in CHK's history out of more than

    2,000+ drilled." He also said CHK expected to average 10 mmcfd OR MORE across its entire HA. Shale acreage. He also said paying bonus

    of $30,000/acre was "chump change" to the lessee when you get a 6.5 bcfe EUR well--which CHK, HK, CRK and GDP all have conservatively projected.

    The CEO then went on confidently to predict that an acre of HA. Shale undeveloped property would go for $50,000/acre. He said it "already has reached       

    $50,000/acre in the Barnett and it will in the Haynesville also."

   So, things have slowed lately as the o&g companies focus on cheaper tracks and fill in acrage in their core areas of already leased property and landmen

    hint "they might leave the area." This is not going to happen.

    GDP did not drill one single HA. well in 2007 and hasn't drilled a HA. horizontal yet. However, it is acquiring new acreage and in its conference call said

     it expected to spend in 2009 $100 MM drilling HA. in its CHK JV and another $100 MM drilling HA. acreage in East Texas that is not included in the JV.

    $200 MM of spend in 2009 vs. ZERO in 2007.

    HK said it expected its 2009 HA. budget to be $1.1 BILLION!!

    CRK has never drilled a horizontal HA. well and it has now permitted two in 11 N, DeSoto Parish, and announced it had leased 15,000 net acres in 2008.

    CRK said it would have 5 rigs running in 2009 and seven by the end of 2009. CRK said it would have 6 horizontals spud by the end of 2008.

    XCO has never drilled a horizontal HA. well. It announced this week that it will have 5 rigs drilling horizontal by the end of Q1 2009. It said acreage was

   going for $20,000 to $30,000/acre (these guys never go high in con calls); it is not in their interest to do so). In the call, the XCO speaker said "the HA.

    is NOT hype." Aubrey McClendon(CHK CEO) "may be low in his projections." XCO said HA. Shale is high porosity, high pressure and high organic content.

    PVA (East Texas) said it would drill 14 horizontal HA. wells in 2008. Its Fogel well did 250 mmcf in 50 days. It has four rigs drilling HA. horizontals and

    will increase to six in 2009. It will up drilling and LEASING budget. It said property was going for $30,000/acre.

    THINK ABOUT IT!! DOES THIS SOUND LIKE THE PLAY IS GAINING IN THE O&G companies BUDGETS!!!

     ANSWER IS YES. Also, XTO, EOG, SWEP (Shell), Camterra, Bridas, Matador are all now drilling H