Replies to This Discussion

Permalink Reply by Bobi Carr ("parker") on July 26, 2009 at 16:31

Yes. You are subject to the validly executed lease.

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Permalink Reply by Max on July 27, 2009 at 2:51

thanks parker for the info.
max

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Permalink Reply by P.G. on July 27, 2009 at 3:59

I wonder how many leasing companies are taking advantage of their options as they come due?
Seems like a company would not spend the money if it didn't look like drilling might be taking place in that section before the 2 year extension ran out.

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Permalink Reply by The_Baron on July 27, 2009 at 5:35

For a $100/ acre, you better believe they will extend.

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Permalink Reply by Henry on July 27, 2009 at 7:35

Baron,
I know of some leases that got extended for only $35/acre. Ouch!

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Permalink Reply by Bill R on July 27, 2009 at 8:34

I can tell you that both Cabot and Southwestern have taken 'FULL' advantage of their rights to the lease extensions on my family's current leased properties. Up to and including taking over leases from other company's. Case in point, the family has two holdings at County line in Shelby/San Augustine counties that butt to one another, one is a 526 acre tract and is leased for $45/acre on the extension after the first four year expired... the other, leased back in April-May 2008 went for $2200/acre on a set three year term for 540 acres. Both of these leases was executed by the same company and landman. As you see while we made out on one, we took it in the shorts on the other on the bonus monies.... of course, if they do come in on either, the established royalty agreement will pay off in spades and make all the bonus monies a mute point.

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