Replies to This Discussion

Permalink Reply by dreamcatcher on July 23, 2008 at 13:15

The new rack rate contract from twin cities seems to be $8500 in this area (I personally know of 3 people who have signed for this unrepresented). There is a group that has been meeting on Coastal Rd off of Winfield (their estimate of 300+ acres so far. Merrywoods is organizing and meets at Hope Church by Platt Elementatry, but they seem to be leaning toward the 4% charge from bonus. There also is a group consisting of Esponita and Bodcau Station Rd. that has and is meeting at Eastwood Baptist Church. Having recently had a contract negotiated in this area for considerably more, I have made all of these groups aware of each other. I get a sense that the leaders of these groups are concerned about retaining control. The simple answer is to pool all information of people interested in forming as one group, try to get as much land under one roof so to speak (800+ acres will get you there and everyone does NOT have to be in the same Township, Range and Section) and hire an OIL and GAS ATTORNEY to represent the group for a set fee. Nothing against Geoligists, landmen and the such, but your having a major contract your going to sign and no one should be paying 4%, period. Born and raised in Haughton and IMHO, the Coastal Rd group seems to have there act together better.

Permalink Reply by Moe on July 23, 2008 at 16:08

I have heard of the coastal rd group and I have heard of Bellevue and Winfield Rd. people getting $15k/acre. I have aligned my acreage with the Merrywoods group but with all the information available I find that I'm constantly second guessing my choice. If you don't mind me asking, would you give more details about your negotiations?

Permalink Reply by ez on July 23, 2008 at 17:10

im also in haughton timbers east sub. we went to the meeting at eastwood and the attorney's at that meeting were really good and said they would do this for a flat rate. i have family in a group like this in caddo that just leased for a nice amount and there fees were $15.00 no misprint. thats over 20k an ac. and 25% for a $15.00 fee. no 4% an ac. crap. i hope we can get our neighborhood in this group. we are currently trying to put together a meeting for our neighborhood to get the ball rolling. ive also talked to some others in another section on hwy 80 about this group. hope it all works out for our community.

Permalink Reply by dreamcatcher on July 24, 2008 at 12:18

There is a group in Greenwood who are represented by attorney Lane Wedgeworth. They are getting $22,500.

Permalink Reply by ez on July 24, 2008 at 12:26

thats prob. the same group my family is in. this seems to be the best way that iv'e seen as far as a home owner with small acreage.

Permalink Reply by Moe on July 25, 2008 at 8:12

I had a card that I can't put my hands on right now from one of the Red River guys that came to the Merrywood group meeting. He offered $8500 to a friend on Wafer Rd. Have you joined one of the three groups mentioned on this thread?

Permalink Reply by Moe on July 25, 2008 at 8:47

Sounds like we're in the same boat. I'm in section 11.

Permalink Reply by Moe on July 25, 2008 at 8:54

That's what I thought when I joined them. Did you attend any of their meetings?

Permalink Reply by Moe on July 25, 2008 at 9:05

What time is that meeting?

Permalink Reply by Gordon Tyler on July 26, 2008 at 17:19

I heard from a neighbor that they thought Country Place made their goal of 90%. A lot of what I have read stated that the 4% isn`t always a good idea. That person has now entered into the contract with you. Most good attorneys,[is there such a thing,I do hope], off the record state that you are better off doing the flat rate. That being said it`s just whatever fits your situation.

Permalink Reply by dreamcatcher on July 25, 2008 at 10:46

What I cannot figure out is, if you use a geoligists, landman, etc... and they charge 4%. Lets say a group has acreage of 800 acres and you get $20,000 an acre ( this might seem an etreme amount, but it is very doable). That 4% comes to $640,000 and your group can hire an oil and gas attorney for $2500. That might be why Cheasapeake and there affiliates have a good portion of the local oil and gas experts under retainer.

But what can any negotiater do for your group that is worth $640,000. At group meetings, most people tend to want to sign up with the first person who says,"My name is blah blah and I will represent you". WOW. Like we tell our children, do your homework.

Also, an attorney can generally get you a cost free royality provision ( probably the single most important thing considering prime acreage is looking to make $200,000 to 250,000 an acre over the life of this play, at 25% royalty), pugh clauses, shut in royalties, money for sulphur and other by-products, plus a whole slew of other landowner favored provisions. Not to say that other negotiaters can't do the same, but for my money, an oil and gas attorney (especially if he or she has recent history of doing the same locally) is the way to go.

Permalink Reply by Moe on July 26, 2008 at 9:47

Is there any truth to the rumor that Country Place has already signed a deal?

• ‹ Previous
• 1
• 2
• Next ›
• Page