Caddo Parrish Mineral Rights $$$

[Chew]

My wife and her 3 siblings have been getting about $300 every other month from some mineral rights in Caddo Parrish, La. The company is Chesapeake.

Within the last few months they have been getting multiple calls asking to sell their rights. One of her brothers gave in and they paid him $10k cash (initially started at $6400).

Obviously there's something going on with the area. The wife isn't going to sell hers.

I'm just wondering if any TBHers have any specific info on oil/gas production in the area. Or any insight into Chesapeake's activity there.

Thanks

[oktx]

I would guess drilling soon.

[bphillips]

If they’re asking it’s probably worth hangin on to even if it’s jist to keep driving the price up.

[Landrover]

If they’re asking it’s probably worth hangin on to even if it’s jist to keep driving the price up.

Yessir!

Sent from my SM-G965U using Tapatalk

[Texas Grown]

If they’re asking it’s probably worth hangin on to even if it’s jist to keep driving the price up.

Yes sirree. Chesapeake got sued big time a couple of years ago by multiple groups across several states. They had been ripping people off by a sales scheme like you wouldn't believe, storing gas at discounted rates. Then buying it back at bigger discounts to sell to the open market at higher prices. The CEO mysteriously ran his car into a tunnel wall killing himself when news broke he was going to have to answer for the allegations in criminal court. After the suits were settled, and bankruptcy filed, they sold out to TEP who now controls distributions in this area. The only time I've ever seen offers being out is when there is a distribution about to be made.

[RascalArms]

You might be in luck Bobby. IMO, if Chesapeake is involved...you can bet it’s big.

[RS3]

Selling mineral rights gives him $10k right now. Keeping them gets him a check every month based on production for as long as he owns the mineral rights. It could dry up tomorrow or produce for several lifetimes. He took the quick cash but might have made more in the long run one check at a time.

[Aggiehunter08]

If it was TX, NM, CO, OK, WY I could help but I’m clueless on Cajun oil. Sometimes it’s best to sell and sometimes it’s best to keep them.

[merlin]

I would never sell minerals you are getting a check on. They pay you for 5 years of what it is making now. This is mailbox $ that can be handed down to your kids. That 10,000 gonna be gone in about 2 weeks

[Cajun Blake]

I’m in that area (Caddo & DeSoto Parish) monthly for work. Chesapeake once had a large office near Stonewall, LA on I-49. That area was crazy busy during the Haynesville Shale oil & gas boom 10 yrs ago. Once the Fracking industry in North LA shut down, Chesapeake closed that office as I never see cars or trucks at that office location.

If land owners are now being approached to sell mineral and surface rights, I would not sell as more activity is planned for the future.

Interesting story about the Haynesville Shale. Terry Bradshaw previously owned a 500 acre horse farm that was directly on the prime drilling area. He sold the property to a prominent neurosurgeon in Shreveport just before the Shale was located. The neurosurgeon has been paid tens of millions on his investment. I’m sure Bradshaw is still sick over selling his farm

[dbaio1]

Hang on to it Bobby. We have property in the same parish and Bienville.. They are targeting people looking for quick $$ and not thinking long term potential. They are targeting 18,000 feet and more horizontals now in the Haynesville. By the time your grand kids are our age they will probably be well below 25,000 ft. A few hundred every month or so adds up over time. Also Haynesville is the closest major gas play to the LNG shipping facilities on the gulf. The amount of LNG exports is ramping up as new trains come on line. This is a major reason the Haynesville has fired back up.

[TheHammer]

Just a normal mineral rights buyer. Just like any other business, they buy the mineral rights at 2.80 gas or $50 oil in hopes that the price goes up. So then, he’s doubling what your wife’s family was making due to higher commodity prices. Sometimes it has nothing to do with drilling activity.

[bphillips]

Just a normal mineral rights buyer. Just like any other business, they buy the mineral rights at 2.80 gas or $50 oil in hopes that the price goes up. So then, he’s doubling what your wife’s family was making due to higher commodity prices. Sometimes it has nothing to do with drilling activity.

Chesapeake isn’t buying mineral rights for the existing production on something that pays out $300 every other month. That isn’t worth their time that’s what flippers do not majors. They are planning on new activity IMO

[mzurovec]

Chesapeake isn’t buying mineral rights for the existing production on something that pays out $300 every other month. That isn’t worth their time that’s what flippers do not majors. They are planning on new activity IMO

Agreed. Marathon and Statoil have also purchased acreage near there recently. I just submitted a bid on Friday to fuel a frac spread that is generally 20-50 miles from Shreveport. They asked for the bid to be for a 2-3 year project so unless things really tank you can bet the operators over there are doing well...There's no way I'd sell.

[txwhitetail]

Regardless if there will be activity or not there are companies that solicit buying minerals full time. That's all they do. Oil could be $10 and someone would offer to buy them. An offer to purchase rarely has a lot to do with direct activity levels.