Monday, December 14, 2009

Lease Bonus Values Picking Up?

An article in the Shreveport Times last week noted the recent Louisiana Mineral Board auction of leases for public land, where a lease for 185.6 acres scattered around the Mansfield area of DeSoto Parish went to Classic Petroleum for a $18,537 per acre lease bonus and a 25% royalty.  It is worth mentioning that some of the best wells have been found in this area, so it might not be a telling sign, but by comparison, recent lease bids have been coming in around $8,000 to $9,000 per acre.  It's not likely that lease bonuses will get back up to $25,000 to $30,000 per acre, but it still seems like a good sign.

The recent Mineral Board lease included 14 leases in the Haynesville area.  More lease sales are expected in January and February 2010. 

For those concerned about local governments receiving a sudden windfall, please note that the money going to the DeSoto Parish school board is required to go to a trust fund to fund future retiree benefits.

2 comments:

Anonymous said...

"For those concerned about local governments receiving a sudden windfall, please note that the money going to the DeSoto Parish school board is required to go to a trust fund to fund future retiree benefits." This announcement is nothing more than the same line from the same folks. The school system owns an entire SECTION with nothing on it, not to mention the acerage the schools are on. I wonder if they will see fit to resume the life insurance benefit they stopped several years ago because they couldn't afford it.

Anonymous said...

The Eagle Ford Shale play in South Texas continues to gather steam and command higher and higher lease signing bonuses. De Witt and Gonzales County are hot these days with land men actively seeking to lease. A year ago signing bonuses were in the neighborhood or $300 to $400 and acre. Look for this play to spike up in the near future to $1,000.00 and more with the tremendous potential this formation holds. Unlike salt dome deposits the Eagle Ford Shale is consistent in a 15 to 25 mile swath on an arch across much of south Texas. I see a replay of the Barnett Shale leasing with potential of even $15,000 and acre bonuses soon.