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Permalink Reply by Skip Peel - Mineral Consultant on December 9, 2009 at 15:34

Missy. A s-t-r for your tract would help.

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Permalink Reply by Missy on December 9, 2009 at 15:41

Of Course, Sorry.. S33 T16N 9W

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Permalink Reply by Skip Peel - Mineral Consultant on December 9, 2009 at 16:03

In proximity to S33: Chesapeake has an HA unit in S29 immediately adjacent to the NW. S31-33, 35 Will Drill (farmout to Questar) your section, east and west. Petrohawk has units in S27,28 immediately to the north and northeast. To your immediate south, Will Drill has units for S1,2,5-10 in 15N - 9W.

Some companies take leases to create a small working interest in units of other operators if they are drilling close by and wish to have access to the science generated by those competitor's unit well. Most sections have leases to multiple lessees. A lot of horse trading goes on. Chesapeake may want the science. They want to trade your tract for a Questar tract in S29. There are number of possible scenarios but you should keep in mind that your lease terms will be honored by whatever operator eventually drills the wells in your unit. If it's a small tract, it's unlikely to affect which company ends up as operator. So lease with whatever company gives you the best terms.

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Permalink Reply by RBH on December 9, 2009 at 16:15

What are the paying for the additional 2 year option? Net Lease--ie royalty?

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Permalink Reply by Missy on December 9, 2009 at 16:34

Royalty is 25% and I assume they would pay the $6000. again, but I don't know what the terms are exactly. This is just an offer to check yes or no if I'm interested.

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