Halcon (HK) thinks that the Wilcox Sands of SW Louisiana can be developed as a resource play, much like the Eagleford, Cline Shale, etc... This idea has been tested & proven to make 600 BOPD wells out of vertical wells with 2-stage frac completions... Just imagine what will be possible from a horizontal well-bore that can accommodate a 15-20 stage frac completion... wells should IP at well over 1,000 BOPD.
CKX, will get between 18.75% & 25% of production (royalties - free from cost or capital investment) as this play sweeps across their area of operation. In addition, they will get a lease bonus paid to them up-front for $500/acre early in the play to as hight #$%$000/acre (or even more) as leasing competition peaks.
Halcon is not the company developing the Wilcox as a resource play. El Paso is also active as well as some smaller, regional operators...
They are already growing cotton, soybeans, etc on CKX lands, it makes no difference what is grown, CKX only leases the land they do not share in the profits. This statement regards pasture land, not timber, where they receive the vast majority of the profits.