I have 11.25 acres in Bossier Parish. The land is south of 157 near Carterville; NE of the intersection of Goodman Springs Road and Mott Road. Any information or knowledgeable comments on the area would be appreciated.
I understand Sunrise Acquisitions has been leasing in that area.
My family has 20 acres near there, in S24 T23N R13W, and have been contacted by Sunrise Acquisitions for a lease. I haven't contacted them yet for details, but $250/acre bonus, 1/5 royalty are the basics of the offer I know of currently. I'm planning to ask who they are leasing for, length of the term they are requesting, what formations they are interested in, and what lease form they will be using (the BATH form is bad for mineral owners, right?).
I don't have that much experience in leasing, but have researched on my own and talked with landmen from back before the Haynesville was publicly known. 20 acres isn't a large holding I know, so I probably can't successfully ask for any drilling or assignment limits, but should be able to at least get 1/4 on the royalty, correct?
I haven't noticed any activity in the area we are discussing, however there is a new rig currently drilling just north of Plain Dealing on LA3, started a couple of weeks ago, on a site that had been prepared years ago but never drilled. This rig had been moved from a site somewhere around S4 T23N R13W, or possibly in Lafayette Co, Arkansas, as this section is on the state line. I was sort of surprised to see so much activity after not seeing much for several years after crude price collapsed.
As a side note, I did see and talk to some surveyors a couple of months ago. They were out of Springhill and had been hired to investigate the AR-LA state line in the area! There is a sizable discrepancy on the western end of this state line due to survey errors in the 19th century, and because of the big differences in being able to hold on to mineral rights between the two states, I'm sure there are some owners who would like their land to be located on the other side of the line!
TIA for any comments on Sunrise Acquisitions or suggestions on lease negotiations.
The recent activity in the Arkana Field is Cotton Valley sands. The companies are Venture O&G and Petro-Chem. Unless you can generate interest beyond one company I expect your ability to negotiate over 20 acres would be limited. Unless the $250/acre bonus would accomplish something of value I would suggest two things: find out who Sunrise is leasing for and contact the other company to see if they are interested in a counter offer, the chance may be slim but could be worth the small effort; and forego a bonus, take the one fifth royalty but with an increase to one quarter after well payout. That way if the well is economic you should make out better in the long run. The lease form, Bath or any other, is of little importance if you have a good Exhibit A to the lease which would supersede any term in the form lease. Even a modest 20 acre interest is worth a little money spent with an experienced O&G attorney to make sure the Exhibit A is done right. Good luck.
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