Replies to This Discussion

Permalink Reply by Polly Ann Foote on August 12, 2013 at 15:21

The lease was executed on August 11, 2011 with Triad.  It was a 2/3/2: $250/$350/$250 so the primary term was 2 years.  We had the option to lease for 3/4 years and the bonus would have been $300/$400.  .  Last March while I was in Magnolia at the courthouse, I noticed that Triad had already released some mineral acreage near the Roberson well. 

Permalink Reply by XAM on August 12, 2013 at 15:27

Looks like you have one year remaining if in fact it was a 3/2/3 executed on 8-11-2011.  The 3 would represent the primary term in years and it expires on 8-11-2014; unless, you receive the second payment of $350.  You are not due an option payment at this time unless, the above is stated wrong or I am miss interpreting the terms as written by you.  

Permalink Reply by Polly Ann Foote on August 12, 2013 at 15:32

I wrote 3/2/3 instead of 2/3/2.  I thought I had corrected it before anyone read it but I guess not.  It was a 2 year primary lease.

Permalink Reply by Skip Peel - Mineral Consultant on August 12, 2013 at 15:35

Polly, a 3/2 is very standard in the industry.  A 2/3 would be somewhat unusual.  Did you negotiate the lease term or did you accept what was offered by Triad?

Permalink Reply by Polly Ann Foote on August 12, 2013 at 15:57

Skip, I do not see a way to reply under your comment so I will answer your question here.  The original offer from Triad was a 4/4 which was unacceptable to us.  We negotiated with them for over a year and in November 2010 after getting nowhere we said we were not going to lease.  We would wait and be force integrated.  Then in the spring of 2011 another landman approached us and told us the best offer which was what the forced integration would show was a 2/3/2 with $250/$350/$250 or a 3/4 with $300/$400.  At the time they told me of the other large landowners that had accepted this offer.  It also included a 20% royalty.  Since we owned the land in some cases we felt it prudent to lease so we could add some stipulations to protect the land. We chose the 2/3/2 as we thought, incorrectly, that they might not have exhausted their search within the two years and we might get one extension.

Permalink Reply by Skip Peel - Mineral Consultant on August 12, 2013 at 16:01

Yep, in long threads the reply command will disappear.  You did the correct thing which is to go to the reply box under the discussion title.  Interesting story on your lease and the negotiations that resulted in your 2/3/2.  Thanks for explaining it further.

Permalink Reply by Toby Murphey on August 14, 2013 at 6:23

SWN has been dragging there feet on the Hollis #1-21-22 in Bernice hopefully something will happen soon!

Permalink Reply by Skip Peel - Mineral Consultant on August 14, 2013 at 6:27

The permit to drill the Hollis expired 4/27/13.  SWN will need to apply for a new permit.  If they do so then I'd say that's a good indication that they will drill the well.

Permalink Reply by Paul Peterson on September 4, 2013 at 4:44

Lease expired in August was contacted by Swn about renegotiating the lease. Original lease was 3/4 with 300/250 new offer is 4/4 with 200/200. The land is in Union Parish a couple of sections North of Ankors well. wondering if others are being offered the same, I was told that a lot of leases are not going to be renewed and just happen to be in a area they had highlighted for renewal.

Permalink Reply by Big E on September 4, 2013 at 7:23

Just curious, how big is your tract?

Permalink Reply by Paul Peterson on September 4, 2013 at 7:42

12 acres

Permalink Reply by Skip Peel - Mineral Consultant on September 4, 2013 at 7:54

Location, location, location.  It is surprising that SWN's original 4/4 leases (and in your case 3/4) were not sufficient to allow for testing the Brown Dense across a wide swath of the targeted 500,000 acres.  They should have drilled more than 8 wells over that time considering the size of the land investment.  That being said it's good to see that they are willing to offer leases for some portion of the 500,000.

• ‹ Previous
• 1
• 2
• 3
• 4
• 5
• 6
• …
• 8
• Next ›
• Page