Replies to This Discussion

Permalink Reply by adubu on July 12, 2010 at 7:36

John--that is correct they must put drill bit in the ground ( i.e. spud the well ) before lease expires or if they desire to keep your lease without drilling then they will need to renwew lease with you--- just remember it will be a New lease not continue of present lease unless you signed agreement in lease and let them have option for 2 year extension at their option which they must simply pay you before expiration per lease you signed. If it is a top lease and they want you to sign early before expiration they should pay a early signing bonus ( because this prevent you signing a top lease with some other company--- you may sign with another company a top lease but if EOG drill before expiration then this will extent the lease while drilling and if produces well then lease is HBP and the compamy you signed the top lease with simply loses out--generally a company will pay you a % of bonus at signing the top lease and they would lose that to you if EOG drilled it's non refundable and would be deduc at closing of lease if primary lease expires)) plus what ever bonus you negoitate on the NEW LEASE that will be effective day of primary lease expiring. The top lease is like leasing again with new terms including royalty % (Get at least 25%) etc. have oil & gas attorney rewrite the lease for you. Did EOG advise you of their plans or who ?

Permalink Reply by Headly on July 12, 2010 at 8:19

No noticication of their plan. We received notice of the unit but are unaware of any permits for drilling yet. Would we receive notification on the permit? We are aware of some rigs drilled a few months ago with in a mile of our property. Thanks again.

Permalink Reply by adubu on July 12, 2010 at 8:31

john--how did they notify you of unit? rumor--phone call--letter ? What was said to you by EOG---no premit application for a Kurth unit yet on rrc web site

Permalink Reply by Headly on July 12, 2010 at 9:43

We received only a copy of the unit description - all the parties - and map as attachment. Looked real boiler plate. It came through our cantact with the landman. EOG made no representations about when they would begin developing the unit. It was proposed that they could be several wells in time.

Permalink Reply by adubu on July 12, 2010 at 8:58

john--doubt if they would notify of application of permit but you can check rrc site periodically it will be posted the day application made.

Permalink Reply by adubu on July 12, 2010 at 11:05

John--that sounds like they will drill before your lease expires. Are all you minerals in the plat? what is the total # acres in unit? With this info you can calculate your % of net royalty decimal interest assuming the unit stays the same. Wish you good luck with excellent well. What formation they plan to drill James Lime, Travis Peak, or Shale. Recommend to just sit tight for present time ( like you could do anything otherwise--LOL)

Permalink Reply by Headly on July 12, 2010 at 12:45

The formations mentioned in the Unit description is between the Cotton Valley Knowles Lime and base of Haynesville Lime Formation. Is that something you see often?

Permalink Reply by adubu on July 12, 2010 at 14:57

I assume at this present time they are not sure what they plan to explore. The landsman has no clue what EOG plans except they will drill a hole. The CV or haynesville Lime is below the bossier/haynesville shale. It will probably permitted as wildcat to dept that would get them thru lime to top of smackover and then back out and complete the well with lateral leg (horizontal) in what looks best/ Or they maybe drill with plans from begining to be for example a H shale well and go to it and drill it ,of course they log and look at every thing drilling down. will just have to wait and see. I think I would keep in contact with landsman and talk to him every couple weeks to see what he has learned they usually do not object for you calling them. But you may find it permitted on rrc site before the landsman knows about it.

Permalink Reply by Headly on July 14, 2010 at 15:25

Thanks again for this. We are contacting our attorney there tomorrow. My brother, a Florida attorney is in close contact so this is going to be helpful. Remind me what DO means - still learning. We are hopeful that we can get excellent terms. I will keep you posted. We are feeling good. Sweet dreams back atcha. What is happening in Martinsville area?

Permalink Reply by adubu on July 14, 2010 at 15:41

DO==Division Order--- this is a final title opinion from operator of your mineral % net interest in well for payment of royalty after you have a well drilled and producing and you are pooled into the unit --a very good thing to get because then the mailbox money begins every month-- when that time come your attorney should review it before you sign it---good luck let me know how you do

Permalink Reply by Headly on July 14, 2010 at 16:53

Thanks for all your help. What is your real name? If you want to 'friend me", so to speak. My real name is out there...so how about yours?

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