I have family interested in one company because the company offered the huge bonus check, $2,750. Per acre this of course is nothing to sneeze at right? And the bonus check is…. Well $10,312.00 to be exact and 3/16 or 18.75% royalty from a company with no website, history and no answers…

 

And then you have Petrohawk.

 

They offered me $2,000 per acre @ ¼ royalties.  Hey, I know Petrohawk although they were recently sold when I had questions and did not have a business relationship with this organization they would take the time to answer my questions.  Personally, I like Petrohawk. But $10,312.00 is a lot of money and once the contract is signed I will be laughing at the bank right??? For some reason I am not liking that company today when I called the company guy reminded me of a car salesman. Fast talking and I eventually hung up on him because he wanted to give me more than what I called for. I simply asked about the royalties. The contract he mailed to us did not state the royalties but it surely stated we would receive “immediately” upon our SIGING this document the bonus check of $10,312.00 when I asked about the royalty he was hesitant and then wanted to talk about why and what he meant about this and that. Simply thanked him and hung it. It was weird.

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Comment by Rozzy on August 17, 2011 at 8:26pm
I am signing Essay with Petrohawk/BHP.... I wanted to sign with Petrohawk for many years and really excited... Thank you so much for your comment.... :)
Comment by essay on August 17, 2011 at 2:44pm

you should be aware that the company in the process of buying petrohawk is BHP billiton, a huge aussie mining conglomerate.  actually if i'm not mistaken they're the largest mining conglomerate period.

 

that being said, between the two i'd take higher royalties over a higher bonus, especially not with some dodgy-seeming outfit giving the hard sell.

Comment by Rozzy on August 13, 2011 at 7:00pm
Thank you for your opinion this helps so much. My sisters are looking at the contract and the $10,212.00 Bonus and interested...   They are leaning closer that way... I will be lying if I tell you I don't want the money, but I want the high royalty more...  It would be nice if I had both... :/
Comment by HBP on August 13, 2011 at 6:16pm
1/4 royalty is the way, in my opinion.  I see alot of of check stubs for 3/16 leases and stubs for 1/4 leases and the extra 2k is not worth the lower royalty even at 3 net acres.
Comment by Rozzy on August 12, 2011 at 10:30pm
I am in Desoto Parish, where are you???
Comment by Brent on August 12, 2011 at 10:25pm
Rozzy what parish are you in?  What township and range are they offering this amount...Just wondering....Thanks...
Comment by Rozzy on August 12, 2011 at 8:36pm

GoshDarn,

I have copy/paste your comment and generating a message using some of the key messages you mentioned. I never considered those things. Thank you so much!

Comment by Rozzy on August 12, 2011 at 8:34pm
Thank you so much for your comments everyone I truly appreciate it....
Comment by Craig Wascom on August 12, 2011 at 7:16pm
Hi Rosie I am a in the big royalty camp. Really don't like the car salesman type that is all I would need to look elsewhere.
Comment by jffree1 on August 12, 2011 at 6:13pm
Rozzy, such a dilemma... hmmm, let me think (about 30 seconds).  I would go with the 1/4 royalty and ask for a bump on the bonus.  You might not get it but who knows?  Do you think they really expect folks to just sign on the initial offer? I'm sure, though, that they are probably always happy to oblige if/when someone does.  Plus, I always try to steer clear of the fast talkin' car salesmen types.

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