Replies to This Discussion

landownerPermalink Reply by ALongview on January 22, 2009 at 4:39

We were paid on two leases from Devon. One even early. They have been great to deal with in my opinion.

Permalink Reply by B. Taylor on March 5, 2010 at 13:17

was that in shelby county?..... mind if i ask, do you own the land or do you just have mineral rights? what is a fair price for bonus for leases signing as of this month?
-thanks
i own around 5 mineral acres and have been offered 500/ac

Permalink Reply by B. Taylor on March 5, 2010 at 15:16

thank you.

landownerPermalink Reply by student on March 15, 2010 at 6:00

B. Taylor

Contact me and we can talk about the 5 acres.
B. Warren

landownerPermalink Reply by Bill R on January 13, 2009 at 18:21

Devon secured almost 80% of our Shelby properties from family members in early November with the majority of bonus payment drafts being paid by December 12th. These leases were for S.Snider (A649), J.Bradley (A45), and O.Hailey (A333).
However, the other 20% of the family may not have gotten the deeds signed in time and as of yet have heard nothing of payments or drafts, nor are they getting any replys from Devon.

landownerPermalink Reply by George Wright on March 25, 2010 at 6:29

Devon is offering $1,000.00 per acre and 22% for three years on our 56 acre J. B. Tutt A-725 property.

Actually, the offer is from Alan C. Prigge & Associates. Our contact person's name is Gabriel Contreras out of San Angelo, Tx. 325-374-4333

Haven't seen the actual contract, so no comments/questions; yet.
I would like to post the contract here for review---is that possible?

Is this a going market rate offer, or are be being low-balled?

Thanks,
George Wright
geopar@gvtc.com
210 748 4693

Oil & Gas ProPermalink Reply by Carter on March 25, 2010 at 17:14

I think you can definitely push 1/4 on the royalty. 3 years no option? That is good. Better make sure you check the fine print to see if there is option language.

$1000 -- that's so-so. You could maybe get a little more, but I don't know if I'd let it hold me up. It's a buyers market for leases -- just my opinion -- everyone here will tell you how hard it is to time these things. I am bearish on gas into the summer; all NG equities except for a couple are dead money right now even though market pushes higher.

Ask for a horizontal Pugh Clause and also a vertical Pugh (depth clause). If you get it they will probably stick a "one year after expiration of primary term" onto the depth clause -- you don't want that; also the clause will say "deepest depth drilled" you want it to say "deepest depth produced". Those are a few things to haggle over; they will give some/balk on some.

Bottom line: If it were me, I'd work toward getting my money and letting my clock tick.

C

landownerPermalink Reply by ledlights on March 25, 2010 at 20:35

George,

I do not know what the going rate is near your survey, but I believe I can accurately say 25% royalty is generally considered standard for deep rights now for many Texas areas with decent shale potential. Other parts of Shelby with nearby producing shale wells are getting substantially higher bonus offers. There is a recent shale well permit very near you, Devon's Adams #1H . Its results, when drilled, may have an effect on any subsequent lease offers in your area. What is common is for initial offers from E&P co.s to not be their best offer. You can leverage your counter offers with knowledge of going rates and/or any interest you can drum up from another E&P outfil. There are other participants on GHS who can probably provide better information on how to do this. There may also very well be existing discussion threads that can be helpful. Look around.

landownerPermalink Reply by king john on March 26, 2010 at 3:25

another thig that can dramaticly increase the value of a lease is if someone is trying to build a bigger unit. for example, if i leased a block of 500 acres and there were a couple of 50 acre tracs right next door, as the operator, i would have an increased desire for those two tracs ,because i could drill more wells. it goes without saying, do your homework and be aware whats going on around you. there is no better source of information than FIRST HAND knowledge. also NEVER accept a draft. demand a check... its the only way to do business.
kj

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