Huge nat. gas discovery in Louisiana

[jbjennings]

good news in Northwest La.:
there has been a huge deposit of natural gas discovered in Northwest Louisiana where I live. It is so vast that companies are leasing up thousands of acres as we speak. My wife's parents are getting offers of 5 or 6000 dollars an acre plus 1/16 royalties for the 2 acres they live on in their neighborhood. Folks with bigger pieces of land are getting even more per acre. Of course, I'm getting nothing because as usual, I'm not lucky enough to be "in the zone". This is good news for everyone, though, as possibly the new discovery will drop the price of nat. gas all over. I've heard it's one of the biggest nat. gas discoveries ever in the U.S. It's found in what is known as the Haynesville shale......
Just thought someone may find this interesting,
JBJ

 

[jay_merrill]

Re: Huge nat. gas discovery in Louisiana

If that 1/16th is for a well drilled on their property, its a ripoff. If its a "unitization" related royalty, might be a different thing. Either way. glad to know that some folks will be getting some extra income in these economically troubling times!

 

[SgtMaj]

Re: Huge nat. gas discovery in Louisiana

Natural gas is often located just above oil... so I wonder if there's oil down there, too... I'd lease them the land on yearly renewals so that when the oil is discovered I could raise the rates of the lease the following year.

 

[Kenneth Brown]

Re: Huge nat. gas discovery in Louisiana

I really hate to say this but GET A LAWYER. When they started in the Barnett Shale in Ft Worth they were offering people $350 an acre and threatening to bypass them if they didn't sign. After the entire area got together they negotiad (spelling sucs at this time of night, sorry) $13,000 an acre. My county (Freestone) was on the front page of the Wall Street Journal a few years back as the highest gas producing area in the world. We are now ranked at 4th or 5th. I don't get any royalties but do get paid from the pipelines that come through my place. You NEED a lawyer to deal with these people.

 

[mscher]

Re: Huge nat. gas discovery in Louisiana

good news in Northwest La.:
there has been a huge deposit of natural gas discovered in Northwest Louisiana where I live. It is so vast that companies are leasing up thousands of acres as we speak. My wife's parents are getting offers of 5 or 6000 dollars an acre plus 1/16 royalties for the 2 acres they live on in their neighborhood. Folks with bigger pieces of land are getting even more per acre. Of course, I'm getting nothing because as usual, I'm not lucky enough to be "in the zone". This is good news for everyone, though, as possibly the new discovery will drop the price of nat. gas all over. I've heard it's one of the biggest nat. gas discoveries ever in the U.S. It's found in what is known as the Haynesville shale......
Just thought someone may find this interesting,
JBJ

Maybe it's time to join the big-boys

Why not look into finding some investors, find some equipment and hire someone who know how to use it and drill for your own gas?

I just read where some guy drilled his own oil well for about $100,000 and hit oil.

If this discovery is a good as they say, why just let them get rich off of it?

Good luck

 

[jay_merrill]

Re: Huge nat. gas discovery in Louisiana

I saw the same article about the $100,000 oil well. I would say that a well that could be drilled and completed for that amount of money, nevermind setting up an EPA/DEQ compliant tank farm, is a rarity. The well would also have to be extremely shallow to be drilled and completed at that cost.

There can also be issues regarding ownership of oil or gas in sands that extend under multiple properties. Aside from hiring a petroleum geologist to help decide just where to drill and how deep to drill, employing a "professional landman" to advise the Working Interest Owners (what partners in a well are called) on ownership issues is key.

I don't know much about drilling in NW Louisiana but I just did some surfing to educate myself a bit. In general, it seems that some wells in the area have been drilled to a fairly shallow depth, but that most are in the 6,000 to 12,000 foot range. I also found a site about the Haynesville shale specifically, and it says that this reservior requires well depths of about 10,000 feet and deeper. These are not wells that are going to be drilled inexpensively.

I think if I owned property over this shale, I would be inclined to let others do the drilling and take the risk. I would also hire a very savvy attorney who specializes in oil & gas related issues. This is important because, beyond the basic issues such as negotiating a good financial deal, a lot of things can go wrong while drilling a well and producing from it thereafter. As a land owner, I would want to be dealing with someone that has the proper insurance and general financial ability to handle a well blowout, a ruptured pipeline, etc. ... I would also want to be darn sure that I had them nailed down via good legal agreements, to hold me harmless and indemnify me for any damages to persons/property other than my own.

 

[Kenneth Brown]

Re: Huge nat. gas discovery in Louisiana

I forgot to add that you shouldn't be to far from Longview Texas, its only about 40 miles or so to LA from there. It will have lots and lots of good lawyers well versed in oil/gas leases.

 

[levittownnick]

Re: Huge nat. gas discovery in Louisiana

I knew that sooner or later someone would find out that I was the one with all that gas. I was trying to keep it quiet, sneaky like. I thought it was from the eggs that I eat. Beno was supposed to handle it. lol.