Tuscaloosa Shale Oil And Gas Leasing

Over the past few years, several companies have secured large lease blocks of oil and gas leases in the Tuscaloosa shale play of central Louisiana, on into Mississippi. Oil leasing and gas leasing picked up steam in 2010. We don't yet know if the Tuscaloosa shale (a.k.a. Tuscaloosa Marine shale) will turn out to be a success but widespread oil and gas leasing has occurred, with several hundred thousand acres of leases on the books.

What Is An Oil And Gas Lease

An oil and gas lease (oil, gas and mineral lease) is a contract between a mineral owner (Lessor) and an oil and gas company (Lessee). In Louisiana, the mineral owner has the right to drill and explore for oil and gas on his land and property. However, very few mineral rights owners are wealthy enough to do that, in that oil and gas exploration is not only very risky, it costs a lot of money! So, it is rare for a mineral rights owner to drill on his own. Instead, he contracts with a company through an oil and gas lease, he will lease land, giving the right to drill and explore for oil/gas to the Lessee in exchange for consideration. The consideration usually includes an oil and gas lease bonus (signing bonus), may or may not provide for annual rental payments, and also provides for a royalty (royalties) if oil production or gas production (or both) is obtained. That is what those who lease land hope for!

Oil & Gas Leasing In Louisiana

Louisiana has long been a state enjoying much oil and gas lease activity. Yet, most of this has occurred in two regions -- north Louisiana and south Louisiana. Central Louisiana, where the Tuscaloosa shale play is, had not enjoyed much leasing. That's because not much oil production or gas production has been found! Hopefully, this will change with the Tuscaloosa shale (Tuscaloosa Marine shale).

Northwest Louisiana, in particular, has enjoyed much Haynesville shale oil and gas leasing in the past few years due to the discovery of the Haynesville shale play. It covers parts of Caddo Parish, Bossier Parish, Webster Parish, Bienville Parish, DeSoto Parish, Red River Parish, Natchitoches Parish and Sabine Parish. Oil and gas lease bonuses reached a crazy high level in 2008 but then the oil and gas business crashed in the fall of 2008 and things got more real! It was pretty insane and in fact, many oil and gas experts are still shaking their head at what went on. Greed is a powerful emotion, even for large  oil and gas companies!

For those who lease land in the Tuscaloosa shale play, it's different from a (potential) production standpoint, as oil production, as well as natural gas production will occur in the Tuscaloosa shale if any production is found. Whether it will be profitable, we don't know yet. But it will be "liquids rich," such as what is found in the Eagle Ford shale and Austin Chalk formation in south Texas. This is good, as crude oil brings a better price than natural gas. But, as for high volume productivity, the Haynesville shale has seen some big producers (as well as a lot of poor wells). Here's to hoping the Tuscaloosa shale turns out to be as productive as the "sweet spot" Haynesville shale. If so, the oil and gas lease value (mineral rights and royalties) will certainly increase!

Tuscaloosa Shale Oil & Gas Lease Area

If you do not have an oil and gas lease on your property in central Louisiana and wish to lease land for oil and gas, you may contact us and we might be able to help. The parishes where we may be interested include: Vernon Parish, Evangeline Parish, Allen Parish, St. Landry Parish, Concordia Parish, Beauregard Parish, Avoyelles Parish, West Feliciana Parish, East Feliciana Parish, St. Helena Parish, Tangipahoa Parish,Rapides Parish, Point Coupee Parish, Washington Parish, St. Tammany Parish, La Salle Parish and Catahoula Parish.

If you are already under an oil, gas and mineral lease, there is another option and that is, you may sell mineral rights in the Tuscaloosa shale. You can also sell mineral rights and royalty rights, whether you have signed an oil and gas lease or not. Good luck!


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