Discussion On Central Louisiana Oil & Gas Activity
Sunday, May 29, 2011
The Speculators Have Arrived
It's usually a positive sign when the speculators appear in a play. That means that the play has reached some sort of "critical mass". Recent announcements by Devon and Denbury appear to have excited the speculating crowd. Landowners have recently been receiving higher offers from new parties who don't appear to be representing large oil companies. A word to the "wise" landowner. While most landowners focus on the bonus and royalty amount, don't forget that an experienced, well capitalized company could also drill some wells on your land that might provide monthly income for years to come. Shale plays are costly and require a significant amount of capital to develop. Beware of the "snake oil salesman" promising a few more dollars per acre. They have arrived in the TMS with "product in hand".