Replies to This Discussion

Permalink Reply by Foxiecajun on July 26, 2008 at 3:35

Renew I'll bet! Since Chesapeake owns now.

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Permalink Reply by lanadan Ds3 on July 26, 2008 at 3:43

Reed,
Pan American assigned the leases that they held in our area (I am also in sec. 20) some time ago to Classic Hydrocarbons. On 1/1/08 Classic assigned all leases (5000 acres) plus several producing wells to Chesapeake. This is good news because Chesapeake has the reputation of being the best in the business as far as drilling wells. I am still unleased and am negotiating with Chesapeake now. As far as the 2 year option, remember, Chesapeake has all the rights that you gave to PanAmerica. If there is a dollar amount to extend the lease for two years in your lease form, then Chesapeake only has to pay you for that amount, even though the going rate is much more.

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Permalink Reply by Gungagalonga on July 26, 2008 at 7:32

Lanadan,

I am also negotiating with Chesapeake in your area. I am just across the river in NE Shelby County, TX. Last offer discussed was $6,000/acre with 25% royalty.

May I ask what they are offering you on your side of the river?

Thanks

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Permalink Reply by OLD HILLBILLY on July 26, 2008 at 10:19

i have heard of $26000 an ac to a fellow across from the old hilltop store on 191 most are getting 25%

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Permalink Reply by OLD HILLBILLY on July 26, 2008 at 10:22

where did you get your imfo?

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Permalink Reply by OLD HILLBILLY on July 26, 2008 at 3:55

ok , thanks , i didnt know what they had did. i guess we will get a well after all.

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Permalink Reply by P.G. on July 26, 2008 at 4:27

It's very hard to imagine that everyone who has leased their minerals will get a well drilled in their area before their leases expire.
That could be a blessing for those who signed for low bonuses!

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Permalink Reply by OLD HILLBILLY on July 26, 2008 at 5:31

yes i know , but they have to do something , with the option they only have 2 years 8 monthes , than it all starts all over , and i do not see and oil companey letting go of a lease they got for $125 and ac with 3/16 rolity , the profit from each 640 ac is expected to be a billion dollars

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Permalink Reply by P.G. on July 26, 2008 at 5:47

Yes! That's certainly something to get them motivated but do they have enough rigs and workers to get to everyone in time? I'll bet there are mineral owners all over the place they took advantage of with low bonus and royalty percentages.
All those with the lousy deals can do is hold their breath, huh?

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Permalink Reply by CBT on July 26, 2008 at 6:02

We too are the recipients of a low deal 3 years ago. Our 2 yr. option comes up in 5 months for $25 per acre!!!. However, in our lease, we have a clause regarding Top Lease which allows another company to come in, make an offer, then the original company must be allowed to match or lose the lease. Should we start "shopping" around to the other big names or leave it alone for 2 years then make a bigger deal. My fear, is if Shell (Audobon land leasing) sets up a well before the lease extension is up, we are then committed to whatever numbers they put out in 2 years.

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Permalink Reply by P.G. on July 26, 2008 at 6:21

Do you mean your option is up for bids?

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Permalink Reply by CBT on July 26, 2008 at 6:28

I understand with a Top Lease clause, ANY company can come in and make a bid as long as the company you have a lease with can match the bid and hold on to the land. I'm new at this so may be misunderstanding some points, but other discussions regarding "Top Lease" state this might be a recourse with those of us who got in several years ago with low price per acreage.

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