Our family has been under lease with several companies but most recently Weatherly which declared bankruptcy. Just recently we have been approached by another company to lease the property. What are the going rates?
I have received it, Ann. I'll post a reply on your page. You can go to any member's personal page by clicking their name in blue. Of course if their page is set to "private" you will have to send them a "friend" request and they would have to accept. Then you could access their page.
I got your email. Please take your time. Enjoy your dinner party and just whenever you get a chance to review it.
I sent the information to the email you sent and it was returned. Can you give me another email.
3/16ths is insane if you are anywhere near production. do not lease for that.
Ditto on Jay's comments - 25% royalty should be norm if near production / I would personally give up some bonus $$ to get the right royalty percentage
WEATHERLY OIL & GAS could not find any takers because of the location in the Ashland Field. No reported production since 2016. Rock Man and Jay, what would you consider a reasonable royalty for minerals in Section 20, Township 13N, 7W?
Considering that you have a 4155' treated lateral in this section that IP'd over 21 MMCF per day and cum'd 5.5 BCF before quickly going off line in August 2016, I would say 25% royalty interest.
This was a 2012 completion - less aggressive fracs were the norm and the rapid decline may be indicative of that approach (note that I haven't dug up the details on this 2012 frac).
Larger more intensive fracs combined with 2019 hz drilling and completion technology and approaches should equate to better wells.
Just my opinion as always.
Thank you Rock Man. I feel like a kindergartner going to college. I don't have a clue where to go and what to do.
That's one way to look at it. The other is that there are no producing HA wells within 6 miles to the west. This is on the far eastern periphery of the defined play. Chesapeake assigned the wells to Weatherly because no other operator wanted them. Weatherly took them on the chance that the deep rights might be worth something later. Didn't work out, leases have expired.
There are no field orders (spacing approval) in that six miles and no permits to drill. If we weren't in a prolonged depressed price environment, somebody might be interested. The chances of that happening in the next three years is slim and none. That's why this is such a low ball offer and the renewal options is a must have. IMO, it is wildly speculative. I agree that three sixteenths is too low but a quarter royalty ain't happenin' in this location.
Skip has been very nice with his time & multi replies, but with 56 acres net minerals you should take his advice and see a knowledge Oil & Gas attorney. Skip can help with referral if needed
there are many important things to getting a lease you can live with for possible decades and possible to your heirs spending few hundred $ now will more than return your investment in future. Your money is in the ground not in the lease bonus
%Royalty, many different Pugh clauses, royalty Free clauses written correctly to be sure it’s Royalty free 100%, etc. etc. Good attorney will be sure lease written for you not the Oil & Gas operator
wish you the best
Long time, no hear from, adubu. Happy New Year.
Back at you the same Skip
with the 2 area of producing minerals in East Texas ( small 20 acres cotton valley & Travis Peak ) that’s getting long in tooth & my larger acreage ( 85 acres ) just on margin of the Shale in Shelby County Texas has never been released after CHK let it expire back in 2012 unfortunately I did not get the big $5k per acre only 350 but that was nice in 2009. Then everything got quiet in the Haynesville I got busy elsewhere then began receiving interesting emails from Keith on the Gohynesvilleshale.com web site renewed by interest to read some articles