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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on April 4, 2024 at 6:49

If I had to guess, I'd say this is Paloma with a land company, Dorado?, leasing on their behalf to finish out leasehold where the company looks to drill wells in the not too distant future.  Paloma has applied for wells in Township 17 North, Range 14 west.  This is in the Shreveport Field and the area of the regional airport.

It would be helpful to know the lease terms offered in order for anyone to provide an opinion.

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Permalink Reply by lee on April 4, 2024 at 9:24

$2000 per acre, 1/5 royalty, 3 years

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on April 4, 2024 at 10:01

lee, if your lot is in that area I mentioned, I suggest you see if Dorado will admit to representing Paloma. If Dorado is working on behalf of Paloma, I would personally try to get a somewhat better royalty fraction in exchange for a reduction in the bonus.  If you have an average residential lot, we're probably talking something less than $2000.  Standard residential lots are normally around a quarter of an acre or less, so $500?  In the long run productive wells should make the royalty fraction the main money maker.  If a quarter royalty isn't possible, I'd ask for a nine fortieth (22.5%).  If your acreage is as small as I think it may be, don't push too far.  The lease terms offered are not out of the ordinary.  I would avoid leasing to Dorado if the company is not representing Paloma.  Instead I would either wait for Paloma to contact me or I would try to contact the company to see if you can get a direct offer.  Good luck.

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Permalink Reply by Quattro on April 4, 2024 at 13:44

I do know of a friend who lives in Springlake area who got a generic offer letter recently.  I cannot completely recall the company he mentioned.  But similar terms.

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