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Permalink Reply by norma smith on October 9, 2013 at 18:18

Shirley, I tried to inbox you, but not sure if you got it... Would like to talk to you... email is nesmith75551@gmail.com

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Permalink Reply by Joe Deerhunter on October 10, 2013 at 16:37

Hi folks -

I've been reading but not much to comment on till now, and I'm replying to Polly as I know you are in my area.  Our family has about 400+ acres in columbia and mostly leased to SWN, which hasn't offered to renew or drill for a bit... now, here comes Atlanta exploration co with an offer on 5 mineral acres in T17 S, R 20 W in Columbia, for the "North Kerlin Prospect," which I haven't heard of yet.  A phone contact with my brother, he said the landman indicated it to be shallower than LSBD, yet a cursory look at the lease has no specification for depth.  Its a pretty sketchy offer, I think - $100/A and 1/6th royalty, with a shut-in clause that would hold it "by production" with $1/A/year payments.  Of course the initial lease offer allows for deductions for any and all costs of production and transport before paying what's left of the 1/6th. 

Of course I'll run this over to the lawyer; we have boilerplate left from the SWN negotiations.  Iit is a small acreage but this seems an awfully lowball offer with little protection for the owners. 

But my point to Norma is, it may seem slow, but there is interest in the area yet.  It looks like small operators, though I get the impression that they are just being opportunistic as bigger operators let leases lapse, and owners feel desperate. 

OTOH, I may be overinflated from reading other opinions here.  I'd like to see replies from anyone with experience in the Atlanta area. 

- JOE DEERHUNTER

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Permalink Reply by norma smith on October 11, 2013 at 3:23

Thanks, Joe, for your input... I'm not in a hurry, so I'll just wait around for a while... Hopefully others will comment if they have other information that may be helpful...

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Permalink Reply by Polly Ann Foote on October 14, 2013 at 5:43

Joe:

All our minerals in the Atlanta area are under lease until February 2014 so we will know in a couple of months whether SWN is still interested in them.

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Permalink Reply by Polly Ann Foote on October 16, 2013 at 17:12

Joe:

We own minerals in 17-18-19  which were included in that August lease which  SWN chose not to extend.

 

 

 

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Permalink Reply by Joe Deerhunter on October 17, 2013 at 11:57

Thanks Polly - I just got back from elk/deer hunting (surprise!)  so I'll be back to looking into this offer soon. 

Does anyone else have experience with Atlanta Oil, and/or suggestions for what specifically I want to put in the contract regarding this North Kerlin Prospect?  What depth is that anyhow?

-Joe Deerhunter

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Permalink Reply by Polly Ann Foote on October 19, 2013 at 6:26

Joe

I have dealt with Atlanta Oil.  They are very nice but they will try to get you to agree to the lowest royalty they can.  So I  would not be the first to lease, I would be checking the courthouse, and I would tell them I want the same amount as the most favored client is getting.  If I did not own the surface and the amount of money was not significant, I would wait and be force integrated because then in most cases you get the greatest royalty and bonus. 

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Permalink Reply by Joe Deerhunter on October 21, 2013 at 10:34

Thanks Polly!

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