Replies to This Discussion

Permalink Reply by jffree1 on June 17, 2011 at 5:10

The Woodlawn (Cotton Valley) produces gas & condensate in that area so that could be the interest.  There seems to be some interest (by others) in looking deeper at the formations under the CV or Haynesville/Bossier and there is a persistent rumor that liquids (oil and/or condensate) may be present in the Smackover/Brown Dense interval.  

I might counter their offer with $750.00 and 25% (cost free) royalty.  That would give you some wiggle room on the bonus but I'd try to get as close as I could to that royalty.

Not much has been drilled in the Mc Nutt survey but the Sparks is a different story...  it is full of wells.  Is it possible they are asking you to lease something they have already included in a unit?  If so, you may not be able to get more than what's offered, if that is what everyone else in the unit accepted. 

 

Good luck.

Permalink Reply by btj on June 17, 2011 at 5:30

According to the Landman its not included in a unit per say, BP has the rights down to the  Pettit, some of the other leases they have all the rights, but not ours. These are my Dad's minerals and he owns 100% of 54 acres in the McNutt survey. The total acreage in the survey is just 64. I did tell the Landman that we would be more receptive to leasing if they leased both.  Does any of this change your opinion? I want to be sure to get it leased, but want to get as much as possible. I do hope to get the 25% cost free. BP has already drilled one Horizontal well in the Sparks survey.      

Permalink Reply by cameo on June 17, 2011 at 12:56

 

       Ask for 2 or 3 times that. Haggle. The 1/5 is pretty standard. 1/4 is harder to get.

 

                                Good Luck

 

 

 

 

 

 

Permalink Reply by Caddo Rat on June 17, 2011 at 14:36

I would try to lease both minerals at the same time. Consult a good attorney. Marshall has some good ones that know oil and gas.

 

Permalink Reply by Coonman on August 24, 2011 at 2:30

btj,

That was in June now it is August....can you give us an update?

 

CM

Permalink Reply by jr on September 8, 2011 at 6:00

I've been haggling...I've managed to get $325 and 25% cost free for the "Cotton Valley and 100 ft below". They will specify "no Haynesville Shale" in the lease. This would finish a unit for a Cotton Valley permit. If I lease, the "100 ft below" scares me. Am I giving them the Haynesville according to that wording?