Sorry I have taken so long to answer your Post, I've been out of town.
When I got home, I found a letter from my Landman, saying they are retracting their offer. Sounds like the market is down or maybe they're moving on.
Obama and his change the world plan is screwing up everything right now. These companies don't even know how much they are going to have to pay in tax next year. I would be setting tight also if I was them. Cash is tight and they can't get loans either. The stock market has been going up and down and in some cases on the down days it was only because of fear.
OK, thanks. If you are contacted by any other companies, please post. I have about 20 acres down the road from you (a few miles south I think) . I went by the OLD HOME church this weekend going to Old Center. First time I have noticed it.
We also had a letter from Samson retracting their offer. I was not inclined to renew my lease and had not responded to them. I already have a temp. abandoned well by Burk/Unit/Chk and thought I was in another well but have yet to hear fron Devon....(I was late to sign a lease with them however). I just felt I did not want to be under obligation at this time. We missed out of all the good bonus money...signed too early and signed too late!
Maybe he was trying to tell me that they don't own 100% of the wells they deal in, that they are trying to spread the risk and he just didn't get that point across? Thats not good that they are doing HBP and then not drilling.
We have have oil and gas wells drilled in Huxley for several years, therefore, a lot of land is HBP. In that case, the only way mineral owners can ever hope to get a Haynesville well is for that company to come back and drill it or sell their interest to another company that can. I would rather Samson do the drilling because they have always treated us fairly and has been a good company to do business with. As far as O&G companies not owning 100% of the wells, I think that is pretty common among companies. There are many companies that JV to drill wells now and especially if the national forest land is involved. They have found ways to get around all that red tape!
Back last year (summer) I was offered $500, 1/5, 3yr, no option. I got them agreed to go $1,000 & same terms, then the crew disappeared. I was lucky enough to get a response from a "company man" of the big company (Devon). He said the prospect was shut down & all offers were withdrawn (early fall). Minerals are up in NW part of Shelby, where Devon & CHK drilled 3-4 wells. CHK said "no-deal". Shucks... Between negotiations they told me they had found heirs under one of my mineral tracts & leased them for the $500, 1/5, 3yr... if that lease runs out, who didn't get $500 / ac.? Me - the smart guy!
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More