Replies to This Discussion

Permalink Reply by king john on September 8, 2009 at 2:02

jerry, i think you are smart to hold out. even though the offer you have had is good, it will and can get better. the reason in my opinion you have gotten a good offer is the recent oil actvity in your area. have you considered a depth restriction ? the oil being drilled for and produced from that area is from the pettet zone. it is much more shallow than the bossier/haynesville. you could in my opinion lease the shallow rights for oil and reserve the deep rights for when NG spikes and they are paying 15-30k per acre again. i have lots of time to wait as well.
kj

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Permalink Reply by jerry smith on September 8, 2009 at 2:15

John , you have to watch your back with all these crooked as oil companys they will rep you off

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Permalink Reply by king john on September 8, 2009 at 2:25

i know that, but if you have a pugh clause, they are restricted to a depth above whatever you stipulate in the agreement.
kj

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Permalink Reply by king john on September 8, 2009 at 2:26

food for thought.....
http://www.gohaynesvilleshale.com/profiles/blogs/help-out-the-littl...
kj

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Permalink Reply by The_Baron on September 8, 2009 at 7:35

Thank you KJ

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Permalink Reply by jerry smith on September 8, 2009 at 2:42

John, they told me that they in the lease offer that if there rig gets stuck its auto matic exstens these the lease for two years can you believe this shit. i told them stick up there crooked ass. I play dum i been in this shit 30 years and you cant believe the dam liers in these oil and gas.

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Permalink Reply by king john on September 8, 2009 at 3:15

well then jerry, it is up to you or your appointed O/G professional to negotiate better terms.
kj

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Permalink Reply by j garrett on September 8, 2009 at 2:26

Don't be too cynical Jerry. Oil is decently priced right now. If that is their interest, John's advice is good. Let them go for the shallow oil. Sever the James Lime and deeper rights from the lease. You are in a hot area, know as "the County Line". If NG ticks back to $4-$5, your offers will increase. Also, don't be a stickler about pooling. 300 acres isn't large enough for a horizontal well. Owning 1/2 of a 600 ac unit that is drillable is better than all of a unit that cannot be optimized. 100% of nothing is nothing.

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