Replies to This Discussion

Permalink Reply by Jesse Joyner on March 19, 2020 at 2:54pm

How much was the bonus $ per acre? What was the royalty % and for how many acres?

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Permalink Reply by Natchitochesman on March 19, 2020 at 3:02pm

$220,000.00  per  40 acres ;  letter did not state a royalty % yet;  future production if any for a five year term lease.   Thanks.

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Permalink Reply by Jesse Joyner on March 19, 2020 at 3:19pm

Natch-man, are your sure it's a legit lease and not some sort of outright purchase of your minerals? That looks like a bonus of $5500 per acre, which is darn good these days (I think), unless there's some sort of major confirmation of production target (I suspect). Plus, if it was a legit lease, the offer should have included what you'd be paid per a % of future royalties. So, a quick bit of advice would be to ask questions and nail down some answers first. Please, don't sign anything until you clear up all of the details. Also, I'm sure Skip with chirp up and offer your some advice soon. In other words, for that acreage and for the amount of money, you very much need to talk to a good O&G lawyer. It'd be well worth it. Skip can point you in the right direction. Conversely, if it's an actual mineral buy, then the particulars get much more fuzzy/complicated. The name of the company making the offer is key, somewhat. Therein, hang in there, wait for feedback from the pros on GHS, and make a smart decision. For these types of things, there's never any reason to rush forward, i.e., there's absolutely never a reason to sign anything until you fully understand what you're truly dealing with. Bottomline, it's an interesting offer if it's a true lease and if the royalty percentage is somewhere about 20% to 25% (along with good lease clauses). I'm guessing Jay, a solid insider, would advise you that a 25% royalty is the go-to desired sum. Others might vary in their advice. Still, the huge bonus is a wow eye-catcher. So maybe there's something off-kilter or maybe you're in a darn-good sweet spot and you have the potential, with the help of a good lawyer, to ink an excellent "lease." Don't rush it. 

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Permalink Reply by Natchitochesman on March 19, 2020 at 5:08pm

THANK YOU VERY MUCH .... I know there were some abstractors in the Clerk of Court, Natchitoches Parish, La. about 3 weeks ago.

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Permalink Reply by lee on March 19, 2020 at 3:08pm

Thats $5,500 per acre, you better take that.

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Permalink Reply by Thomas C. McKowen, IV on March 19, 2020 at 3:12pm

What Range?

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Permalink Reply by Natchitochesman on March 19, 2020 at 5:04pm

Sec. 35, Township 11 North, Range 10 West, Natchitoches Parish ....near I-49

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Permalink Reply by Skip Peel - Independent Landman on March 19, 2020 at 4:35pm

Your location description is missing a Range.  It should look something like this:  Section 34 - Township 10 North, Range 10 West.  No need to be leery.  It would help to know the company offering the lease and the general terms:  royalty fraction, length of lease term, bonus per acre......    Indigo Minerals is the operator active in the area that I think you are trying to describe but most of their leasing, of which we are aware, occurred about a year ago.  The company is still drilling in the NW corner of the parish and south along the parish line with Sabine.

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Permalink Reply by Natchitochesman on March 19, 2020 at 5:03pm

Thanks ....Section 35, Township 11 North, Range 10 West, Natchitoches Parish, La. ..... 5 year lease....no royalty fraction stated, no bonus per acre stated in letter ...  Just  $ X.XX amount for 40 acres.  I always thank you for your input and have followed you since 2008-2009 on this site.  Thank you for what you do to help us.

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Permalink Reply by Skip Peel - Independent Landman on March 19, 2020 at 5:16pm

Your welcome.  That sounds suspiciously like an attempt to buy your mineral rights.  Indigo Minerals permitted a well that will produce from Section 34 on 3/16/20, three days ago.  If you are not leased, you need to be talking to Indigo.  You also need to check to see if the public records of Natchitoches Parish clearly show your ownership interest in Section 34.  I suspect Indigo would have already offered you a lease unless that just fell through the cracks.

SERIAL	WELL NAME	WELL NUM	ORG ID	FIELD	PARISH	PROD TYPE	SEC	TWN	RGE	EFFECTIVE DATE	API NUM
252273	HA RA SUW;RUSS 2&35-10-10 HC	002	60005	4894	35	00	011	10N	10W	03/16/2020	17069204600000

 

PRMT DATE	SPUD DATE	STAT DATE	ST CD
03/16/2020		03/16/2020	01

SCOUT INFO

REPORT DATE	WELL STATUS	MEASURED DEPTH	TRUE VERT DEPTH	DETAIL
03/16/2020	01	22000		327' FNL & 296' FEL OF SEC 11-T10N-R10W. PBHL: 1850' FSL & 440' FEL OF SEC 35-T11N-R10W. (REPERMIT OF SERIAL #251493-EXPIRED)

Click on 60005 under ORG ID to find contact information for Indigo.  And by the way, pay no attention to lee.

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Permalink Reply by Natchitochesman on March 19, 2020 at 5:22pm

I have a lease with:  Indigo in Sec. 35, T 11 N, R 10 W.

Lease offer from:   Live Oak Royalties, Woodway Dr., Houston, TX

THANKS !

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Permalink Reply by Skip Peel - Independent Landman on March 19, 2020 at 5:25pm

That's not an offer to lease.  That is an offer to buy your royalty interest in the new well.  And any additional wells that get drilled in the future.

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