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Permalink Reply by Renee Brown on July 1, 2018 at 6:28

We currently receive royalty checks from Indigo (formerly Chesapeake), Genesis and Jeems Bayou. A broker for Indigo is asking us to sign a new lease to allow an additional well to be installed. I’m assuming three different operators.

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Permalink Reply by Skip Peel - Mineral Consultant on July 1, 2018 at 6:37

Considering your royalty situation, Indigo asking for a new lease is a red flag.  Why would they need a new lease if the old lease was valid?  A new well should not require a new lease.  Something is amiss!

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Permalink Reply by Renee Brown on July 1, 2018 at 6:45

That I do not know. Maybe since their acquisition of Chesapeake, was they want to update equipment or technologies? This offer for a new well came after multiple offers from other land companies to either buy or land for a lump sum, or to do what one land company is calling a lease prescription. Multiple proposals have been mailed out to us in the last few months. I’m going to request copies of the current leases. All I know is that the area looks like it’s surging. 

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Permalink Reply by Skip Peel - Mineral Consultant on July 1, 2018 at 6:47

Don't let any of those brokers or landmen rush you.  Get the facts.  Understand the situation.  And then make an informed decision.  Let me know if you need any help.

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Permalink Reply by Renee Brown on July 1, 2018 at 6:51

Absolutly. I do need some help. Just finding people who know anything about the Shale has been helpful. 

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