Does anyone know about EnSight Energy, which sent me a lease ready to sign (I didn't) and keeps calling. The property is in the Logansport field, 11N 15W Section 16. Is anyone signing new leases? Thanks. 

Views: 1747

Reply to This

Replies to This Discussion

Ensight is a small Haynesville operator as far as development goes.  By that I mean they operate a number of non-Haynesville wells that they acquired from others in order to gain the underlying lease rights.  The company has drilled a few Cotton Valley wells but mostly Haynesville wells.  I wouldn't shy away from negotiating a lease with them as the lease terms are what protects you and limits Ensight's ability to do things you do not like.  The same can be said for any lease with any company.  If you interested in a lease you should:  ask for an executable lease form with a cover letter cover whatever is not covered in the lease language such as bonus per acre, send both to an experienced O&G attorney for review and do a little research to see if you might have other companies active or interested in your area that would make you a lease offer.  Competition for leases tends to benefit the mineral owner.  You can post your section-township-range here and get replies as to what is publicly available data.  You can also get a referral or two for a local O&G attorney.  Hopefully ones without any conflicts of interest with Ensight.

Here are the wells that Ensight IV has drilled.  The status code 10 wells are producing.  The status code 01 wells are permitted.

250732

HA RA SU73;CTF LLC 33 H

001

10

 

E4161

1464

22-JAN-18

033-14N-15W

250888

HA RA SU142;DEVONDONNER30-31HC

001-ALT

10

 

E4161

2360

22-MAR-18

030-15N-13W

250889

HA RA SU142;DEVONDONNER30-31HC

002-ALT

10

 

E4161

2360

22-MAR-18

030-15N-13W

 

 

 

 

 

 

 

 

 

 

 

250902

LCV RA SUO;USA (PARCEL 3)

084-ALT

10

 

E4161

8358

29-MAR-18

002-17N-12W

250904

HA RA SU142;DEVON DONNER 30H

001

10

 

E4161

2360

29-MAR-18

030-15N-13W

251188

HA RA SU113;ATKINS ETAL 6-7 HC

001

10

 

E4161

4313

31-JUL-18

006-16N-16W

251277

HA RA SU61;M&K MIN 33-4 HC

001

10

 

E4161

4313

10-SEP-18

033-17N-16W

251635

HA RA SU143;HODGES FAMILY 19 H

001

10

 

E4161

3608

26-MAR-19

019-16N-10W

251640

HA RA SU143;HODGES FAMILY 19 H

002-ALT

10

 

E4161

3608

29-MAR-19

019-16N-10W

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

251880

HA RA SU144;SNYDER LM LLC 31H

001

10

 

E4161

3608

02-AUG-19

006-15N-11W

251881

HA RA SU144;SNYDER LM LLC 31H

002-ALT

10

 

E4161

3608

02-AUG-19

006-15N-11W

252031

HA RA SU71;CHANDLER 6-7 H

001

01

 

E4161

8358

11-OCT-19

032-18N-11W

252254

HA RA SU76; CHANDLER 31-30 H

001

01

 

E4161

8358

04-MAR-20

032-18N-11W

252376

HA RA SU73;CTF LLC 33 H

002-ALT

01

 

E4161

1464

01-JUL-20

033-14N-15W

Thanks, Skip.

I haven't dealt with a lease in years, and I'm sure a lot has changed. I'll start with the attorney I used previously. The property is this:

11N 15W Section 16. 

Has anyone else signed with them lately? I have not idea about bonuses and royalties.

Thanks,

Gayle

Interesting.  Birx had two permits for wells including your Section 16 but both expired in late July.  I wouldn't have a problem entertaining a lease offer from Ensight IV but since your area is also one where Indigo has a presence, I'd see if they wanted to extend a offer to lease also. I would much prefer to lease with Indigo.  Indigo operates Section 21 to your immediate south.  They might be interested in Section 16.

Patricia, I would be hesitant to lease to Ensight IV at this time.  It appears they are promoting a sale of their Haynesville assets.  Of course the most important consideration would be the lease terms you can get especially the royalty fraction and any language regarding post production deductions.  A good lease is binding upon any company that may acquire it.  So I would not rule out signing with Ensight, I just wouldn't get in too much of a hurry and I would get legal assistance preferably from an experienced O&G attorney.

Thanks, everyone. Sorry for my late reply. I'll look at all these comments. I have sent the least to the lawyer that reviewed a Chesapeake lease several years ago, and I'll forward the comments to him as well.

By the way, the property is 80 acres, half mine, half my brother's.

I have royalty interest in two of their wells. We had some issues getting timely royalty payments and some errors in the calculations. But they seem to be managing production of the wells professionly. I would go for a higher royalty % rather than push for a higher bonus for a long term benefit.

Agree on the concept of giving up some bonus $$$ for higher royalty - that will pay more for a long time assuming any well success. Plus higher royalty will get higher offers to purchase minerals down the road if you opt to go that direction.

That trade off has gotten harder to negotiate without having a large acreage interest.  Bonus offers are modest, initial offers for many are for a three sixteenth royalty with one fifth being the most that operators will agree to. Operators tend to avoid drilling where they can not make their numbers work based on a perception that prices will be range bound for years.

Good point - the dance in the oilfield between mineral owners and operators has gotten more difficult over the years.

Operators overpaid and cut a lot of corners in the Haynesville land rush.  The reality of over supply has served as a sobering lesson and now they live with the ramifications of all that early over exuberance.  The fallout will continue for a while.   

What is Dixon Services offer?  amount of Bonus money, lease term and royalty? 

$1000 per acre, 1/5th royalty, for 3yrs with a 2yr option at $666 per acre. 

RSS

© 2020   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service