Replies to This Discussion

Permalink Reply by adubu on March 16, 2010 at 5:14

bel----you posted this same question 1st Feb and received some good comments--has something changed?????

Permalink Reply by bel on March 16, 2010 at 5:37

i CALLED THE LAWYER YOU GAVE ME AND HE REFERRED ME TO RICHARD RING. HE REWROTEE THE LEASE AND SAID CABOT'S LEASE WAS DEFINITELY IN THEIR FAVOR. I HAVE FOUND OUT THAT I AM ONE OF THE LAST TO SIGN. JUST WONDERING IF I COULD GET MORE THAN THE $1000. PER NET ACRE. I HAVE 23.95 NET ACRES OUT OF THE 862.

Permalink Reply by jffree1 on March 16, 2010 at 5:34

If you are one of several who own an undivided interest in this acreage and most of the other interest owners have already signed, your odds of holding out for additional bonus money are probably not high. If the lessee has a majority of the entire interest under lease, your holding out will not stop or hold up development. The other (leased) interests have the right to see production from their minerals, which will trump you not being leased. You could end up being left un-leased and then you would have to force your way into the unit which is an expensive proposition.

If it were mine, in that area, I would take into consideration that there has been nothing proved in that area yet and nothing permitted for Haynesville/Bossier to date. If they are offering 25% royalty, I would consider taking that bonus because, with gas prices falling, even 1K may come off the table. And it is approx. 4-5 times better than the best offer in this area two years ago (before the madness... which you may never see again). But I wouldn't give them a two year option to extend. You don't want to lock yourself in for five years, in case there is no production.

Permalink Reply by bel on March 16, 2010 at 5:42

MR. RING DID TAKE OUT THE 2 YEAR OPTION EXTENTION. YOU GIVE GOOD ADVICE. I THINK I AM GOING TO GO AHEAD WITH THE $1000. THANKS AGAIN.

Permalink Reply by adubu on March 16, 2010 at 7:37

I agree 100% with iffree1--- just ask for check no draft --then run to bank with the $23,950-- did they agree with changes your attorney made to lease? DON'T BE GREEDY MOST OF THE TIME GREED WILL COST YOU IN LONG RUN. Your money will be made on the 25% royalty if well is good.

Permalink Reply by adubu on March 16, 2010 at 7:43

JR Ewing--if you are in the unit your minerals are undivided to % interest royalty in the unit. It makes no different where you are in relationship to the well bore or lateral.

Permalink Reply by jffree1 on March 16, 2010 at 7:54

There is not even a proposed unit at this time except in the operators war room. A 23.95 ac. undivided interest in an 800 ac. tract has almost ZERO leverage. Get a check or have the draft and the lease held by the bank until the draft is paid.

Permalink Reply by jffree1 on March 16, 2010 at 8:23

I HAVE 23.95 NET ACRES OUT OF THE 862.

How would you go about pinpointing, on the ground, where this 23.95 acres is located within the 862?? If it is undivided minerals, he owns just under 3% of the entire undivided interest. Unless the 862 ac. has been partitioned with the minerals going with the surface, I just don't see how you can locate them. You sure can't go out and arbritrarily say, "well, I want my minerals to be in this spot". You know it doesn't work that way.

Permalink Reply by GoRicky on March 16, 2010 at 6:04

How long is the lease for?

Permalink Reply by bel on March 16, 2010 at 9:39

They wanted 3 year w/2 year option. I am going back to them with just a 3 year no option. Adubu-- No, I haven't given the lease back yet. There are a couple of clauses that we don't think they will go for but will use as bargaining tools. For instance "Favored Nations Clause" and minimum royalty clause of $25. per mineral acre if no drilling within a year.

Permalink Reply by etx44 on March 16, 2010 at 12:12

We all have different lives, if 20th is a big deal for you now take it.

If you are perhaps young and also do not really need extra cash now wait.

I mean wait a long time. You may get 5 or 10 Th acre plus 30% 2 to 5 years down the road.

Permalink Reply by Dave Mercer on March 26, 2010 at 13:39

land about five miles out 147. Any news of drilling yet

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