Replies to This Discussion

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on December 3, 2009 at 17:46

Robert. Your section (27) is under HA unit order to Samson Contour. IMO, Mr. O'Neal's letter is an attempt at scare tactics. I would suggest that you not respond in any way to this letter. The unvarnished truth is that Samson Contour or whatever company will eventually develop your section will not wish to leave you unleased. I consider this an attempt to get you to accept an "opening offer". I suggest that you wait until such time as a HA well is permitted and drilling in your section. Keep two things in mind: One, there is no reason for Mr. O'Neal or Samson Contour to make you their best offer until a well is imminent, and Two, it is your option to lease at any time you choose including after a well is completed in your section. There are other considerations including the size and location of your tract within the section. Without knowing your specifics, this is the extent of the counsel that I will offer. Good Luck.

• ▶ Reply

landownerPermalink Reply by Mac Davis on December 4, 2009 at 0:50

Perhaps, but why send a notice withdrawing an offer that they never made in the first place?

• ▶ Reply

landownerPermalink Reply by Checkmateking on December 4, 2009 at 3:13

I guess thats why the letter says "if" you recieved an offer.

• ▶ Reply

Oil & Gas ProPermalink Reply by The_Baron on December 4, 2009 at 4:03

They may have sent out so many offers that they can't remember who they sent offers to.

• ▶ Reply

Permalink Reply by John Avatar on December 4, 2009 at 5:43

I thought Mark O'neal worked for Chesapeake.

• ▶ Reply

Permalink Reply by RBH on December 7, 2009 at 17:17

is Mark O'Neal broker/agent for Chesapeake?

googled Mark A. O'Neal & Associates, Inc as per letter posted in the blog and got
http://markaoneal.com/content.cfm?id=29

((318) 221-0631)=phone number in letter and matched website

• ▶ Reply

Permalink Reply by JM on December 4, 2009 at 3:34

Samson has recently completed a well in that section.

• ▶ Reply

Permalink Reply by ELLIS HUGH on December 4, 2009 at 3:59

In my opinion,

Mark A. O'neal has been buying leases across a large area in the Haynesville Shale. They have numerous landman all making contacts, providing offers and sending mineral leases. Mark A. Oneal's client may have decided they no longer wish to pursue leases in a certain area and wished to formerly withdraw their offer. Usually, on large leasing projects, there is a database of names and properties to lease. Mark A. Oneal probably sent a letter to each name listed on the database.

I have had to do this a couple of times. But, we called each mineral owner and withdrew the offer.

I have no idea what happened here, but situations change and these things happen in the industry.

• ▶ Reply

Oil & Gas ProPermalink Reply by Dion Warr, CPL on December 7, 2009 at 14:33

Followup to Ellis Hugh:

As a wise landman once taught me about contract law: "A formal offer to enter a contract stands until it is either (1) accepted, (2) rejected, (3) countered (which counts as a rejection of the current offer and the submission of a new offer, (4) withdrawn, or (5) expires (if no date or time of expiration is given, a landman should always anticipate that the timeframe that the offer would be considered will be longer than one would want it to be)."

If I had to venture a guess, the broker wanted to timely rescind any possible outstanding offers (perhaps due to the information supplied by Atlpilot, as sometimes mineral owners are willing to ride the well down only until one discovers a less than stellar completion, then would like to take the lease terms).

• ▶ Reply

landownerPermalink Reply by Atlpilot on December 4, 2009 at 5:09

Samson recently completed a well in that section that tested 5mm/day on a 20/64 choke. For the HS that is not a strong well and may have influenced their decision. On the other hand, that may have had nothing to do with the letter. The reason for you receiving one is probably due to one of the reasons offered by the experts on this site. I am near your section and currently unleased, so best of luck to both of us. Atlpilot.

• ▶ Reply

Permalink Reply by Robert Wayne on December 6, 2009 at 17:16

Thank you all for you replies.

• ▶ Reply

Permalink Reply by RBH on December 7, 2009 at 13:06

website for leasing company...I tend to agree with Ellis Hugh

http://markaoneal.com/content.cfm?id=29

• ▶ Reply

• ‹ Previous
• 1
• 2
• Next ›
• Page