Replies to This Discussion

Permalink Reply by Two Dogs, Pirate on November 24, 2008 at 4:53

They will renew the option, you can bet on that.

Permalink Reply by CBT on November 24, 2008 at 5:15

Option renewal is up in 4 weeks! Haven't heard from them yet! Thought we'd hear from them months ago considering option price is $20 per acre. Siggghhhhh....

Permalink Reply by Stephen K. Pearce on December 1, 2008 at 3:21

I bet you will be receiving a check for $2400 in the mail soon. It happened to me with less than 2 weeks left on my lease. My lawyer advised me to go ahead and cash the check as I had signed the contract giving them the option to renew. It is always best to have a lawyer go over the contract before signing. Too late for that now.

Permalink Reply by Les Bamburg on December 1, 2008 at 8:20

CBT, what is your township and range?

Permalink Reply by CBT on December 1, 2008 at 9:06

We're in Section 34- N10/ W11...heard anything? If so, what does it mean?

Permalink Reply by Les Bamburg on December 1, 2008 at 16:20

CBT, it appears your section has been unitized by Shell (SWEPI) as part of the San Miguel Creek Field (HA RA SUD). Please see the attached.

Attachments:

• 08-1666&1667ap0001 San Miguel Creek SWEPI.pdf, 174 KB

Permalink Reply by CBT on December 1, 2008 at 19:14

Thanks for the response Les! We're in Section 34- the David Baker area. What does this mean???? We have NOT received a letter. Please explain in laymen's terms as we are gas and oil terminologically challenged!

Permalink Reply by Les Bamburg on December 1, 2008 at 19:47

CBT, it means your land will participate in any Haynesville Shale well drilled in the section. The 120 acres would equal to a tract participation of ~ 19%. You should contact Liskow & Lewis and let them know you have not received any information or notices regarding the unitization. They may not have the correct information regarding your property.

Your lessee still has to extend your lease to keep the mineral rights. If this does not happen, you could negotiate a new lease agreement with another company such as Shell.

If a lease agreement is in place, you would receive royalty payments on production from the unit. The royalty would be based on your royalty % times 19% of the gas production.

There has not been a well permitted for your section so not sure when Shell plans to drill.