Replies to This Discussion

Permalink Reply by stan m on July 19, 2008 at 16:31

Gatrpaw, I,m in S2T18R15. Thanks for your response.

• ▶ Reply

Permalink Reply by chi t2 on July 20, 2008 at 13:45

Stan,
I have 10 acres by you, the lot with the American flags. We haven't talked to anyone in several months since the rights aren't ours til 4/09. How does this top lease work?

Thanks,
Chi

• ▶ Reply

Permalink Reply by stan m on July 20, 2008 at 17:51

Chi,
A top lease can be negotiated with O&G co. even though we don't have ownership of mineral rights at this time. It's a letter of intent, which secures O&G co. of our acreage at the agreed upon price and royalty %. They pay you a % of the cash bonus and when mineral servitude expires and returns to us we get the remainder of bonus %. It may be adventagous for them to lock us in now due to price of bonuses keep rising. I'll keep ya'll informed.

• ▶ Reply

Permalink Reply by chi t2 on July 21, 2008 at 17:59

Thanks,
Yes please keep me updated. I know my dad talks to some of the neighbors so if I hear anything on this end I will let ya know.

• ▶ Reply

Permalink Reply by Eric on July 22, 2008 at 12:59

I have the same situation. I am a couple of sections from you in T19. EXCO's lease expires in 7 months. My section has multiple companies holding leases. The people in my section who weren't approached in 2006 are trying to organize and or pool with other sections. They have not been approached by anyone to sign to date. I plan on doing nothing now. The section to the west has a pad being built. I know that holding back can be a double edge sword. If a well in this area makes, then the lease offers will increase. But could be vice versa. Gatepaw is correct about EXCO re-signing, 8K/acre w/ 28%
I am very interested in Matador's Hall 5 in Sec 5 T19N 15W. Last I saw was intermediate casing set. I assume they have made the bend and are probably close to TD if not there. It may be in completion. If anyone know anything please reply.

• ▶ Reply

Permalink Reply by Eric on July 22, 2008 at 13:19

They set 7" production casing?

• ▶ Reply