Any offers S of Many?
I received a phone call today from someone purportedly representing Suncoast, who was interested in the lease status of some property in T4N-R11W. He was very non-committal: just "gathering information"; "possibly future negotiations"; "we may get back to you", etc.
He made absolutely no concrete statements or offers.
Has anyone else in this area been approached in similar manner? By Suncoast or any other entity?
I was called this morning by a Landman for Justiss Oil. He said that Justiss was now leasing in that area; made an initial lease offer:
5 years, paid up
$150 / acre bonus
I will update as I can.
Leased: $300 / acre, 1/4 royalty, 3 years. And very good lease structure.
Yes, i hope they drill 1,000 successful wells!!!
Yes. I leased to Justiss. It was a relief to work with them after negotiating with Chesapeake. I do recommend, if you deal with them, you modify the boilerplate lease to your criteria!!
Actually, I leased through their agent, SunCoast. The folks there gave me the impression that Justiss planned to drill a lateral about the 10,500 foot horizon, Tuscaloosa Trend, I believe, looking for oil. Personally, I would prefer a producing oil well at current prices.
They either did not know exactly what Justiss is looking at, or were not at liberty to say.
They also wanted a clause to allow "voluntary unitization". I told them I'd have to get back to them on that, because I don't know anything about VU. I have posted here on HS, trying to get some information, but so far I've had nada response.
I found the following:
That is right on.
Do you know anything about the pros and cons? What are the dangers and advantages?