Replies to This Discussion

Permalink Reply by cccogml on March 6, 2013 at 4:06

None as of now, might should of taken Lago Petroleum offer.

Permalink Reply by Dogman125 on March 6, 2013 at 14:00

Fortunately, I do have a little gray matter.  I'll wait.  My property isn't going anywhere.  Thanks for the reply and info.

Permalink Reply by Jean on October 15, 2013 at 3:57

I have a few acres in Grant and was contacted about a year ago to lease. The offer was 150 an acre , 20%.  I declined, but was contacted about three more times and they went up to 200 an acre. I declined again and was told this would be the last offer. Then just lately was contacted and the offer was a little better at 400 an acre, 22.5%. With a few amendments to the contract we signed. I don't know if this was good, bad or ugly but was really getting tired of thinking about it. Good luck with yours Dogman....

Permalink Reply by Skip Peel - Mineral Consultant on October 15, 2013 at 4:13

Jean, if the few amendments covered your concerns and the lease otherwise has the basic mineral/landowner protective/beneficial clauses those terms are quite good in comparison to contemporary lease offers.  Bonus offers in excess of $400 to $500 are rare these days in wide spread lease efforts and when operators employ land companies, as all major and mid-major E&P companies do, the traditional override of 2.5% allows the operator to give a 22.5% royalty and maintain a 75% net revenue interest.  For a number of companies this seems to be the new paradigm.  And I find it generally more equitable and straight forward for the majority of mineral owners.

Permalink Reply by Jean on October 15, 2013 at 12:53

Well Skip, they didn't go along with everything I wanted but the one amendment I did like and they agreed to, concerning expenses, was left out when the contract was brought for us to sign. I don't know if that was an accident or deliberate but I caught it. They had sent a fax of  the contract so we could go over it but the contract they brought to sign, came with that one amendment missing. So we switched the last pages and signed.

Permalink Reply by Skip Peel - Mineral Consultant on October 15, 2013 at 12:57

Can you share the company you leased to and what operator they were representing?  Was a target formation mentioned?  Good luck, hope you get some wells.

Permalink Reply by Two Dogs, Pirate on October 15, 2013 at 14:02

Skip, we were in that neck of the woods leasing a little less than 10 years ago. The operator hit a decent Moringsport formation well on Edenborne property, the barbwire king from way back yonder, that Devon has the minerals  on. The buzzards flew in on insider info and I was brought  in to shoot them down. The leases went to $310 and 1/4 before the buzzards flew off. Our operator was full of pi$$ and vinegar, the kind I like. I would think that it didn't expand out too much because of Devon wanting to keep it for themselves for future plays.

Permalink Reply by Skip Peel - Mineral Consultant on October 15, 2013 at 14:25

Interesting, TD,P.  The Devon-Donner Mooringsport horizontals didn't work out in Winn Parish the last few years.  I'm seeing some MPT interest by other operators in other areas but not in Grant.  The most recent is for vertical wells commingling Mooringsport and Glen Rose production in the Logansport Field.

Permalink Reply by Two Dogs, Pirate on October 15, 2013 at 15:05

I am thinking that Winn is a little far North. Our operator went North on the second well and got a heavy water well. We  will just have to see where Jean's property is located. 

Permalink Reply by Two Dogs, Pirate on October 15, 2013 at 14:02

Jean, I wouldn't think that you would let them pull a  fast one on  you, congratulations on being sharp enough to catch it and call their hand.

Permalink Reply by blackjackjackson on October 15, 2013 at 4:38

jean!  you are back.  welcome.  I like what skip said!  

indigo bently 34h seems to be producing.   is your grant acre near boyce or the red.

i'm near mcnutt.   thanks

Permalink Reply by Jean on October 15, 2013 at 12:36

Hi Blackjack, thank you. Our property is close to Montgomery. There are about eight different companies getting leases in the northeast section of Grant Parish. I've "heard" that Colfax has two wells.....

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