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Permalink Reply by Skip Peel - Mineral Consultant on December 15, 2022 at 11:08

You get help.  GHS is a good place to start.  You would need to provide the location of the minerals to be leased by section-township-range, the number of mineral acres you own, the general terms of the lease (bonus and royalty fraction) and the name of the company offering the lease.

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Permalink Reply by Pat Berel on December 27, 2022 at 1:44

How does someone get in touch with ghs

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Permalink Reply by Pat Berel on December 27, 2022 at 2:27

Is there any information for a company with name Gosier Energy llc from Midland Texas. I am offered a lease for T16N R15W Sec 26 in Keithville. I don’t understand the lease. Is there anyone that would look at it to see if it is a good one.

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Permalink Reply by Rock Man on December 27, 2022 at 3:35

In addition to Skip's strong advice about getting an O&G lawyer to look at this lease offer, you should know that Gosier Energy is NOT a drilling company. They are a lease broker whose goal is to go out and get leases (like they are trying to do with you) - they will then assign these leases to an operator in the future. They will have had an agreement with this operator to either be their agent in the field doing the leasing. Or they will market any leases they acquire to an operator.

Keithville is a good area for drilling - I am surprised that this is the first time you have been approached for an O&G lease. There has been some major activity in this area for at least 10-12 years.

I spent a lot of time in the Keithville / Stonewall area drilling shallower Cotton Valley Gas wells in the 2006-2008 period.

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Permalink Reply by Pat Berel on December 27, 2022 at 2:38

Under the royalty section one sentence has 25% of eight-eights of gross proceeds received by Lessee. What does this figure mean? I would appreciate any input. This for about three acres in Keithville. Thank you.

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Permalink Reply by Skip Peel - Mineral Consultant on December 27, 2022 at 2:45

Pat, eight-eighths is oil and gas speak for 100%.  You own 100% of your minerals but when you execute a lease you are signing away 75% to the lessee and retaining 25% for your royalty fraction.  There are numerous other lease clauses that are important depending on your particular situation.  Here on GHS we provide opinions based on the details provided but we don't give out legal advise.  It is a few hundred dollars investment to get a review of your lease offer by an experienced O&G attorney. That's well worth it for a legal agreement that may last 20 to 30 years.  I can offer you a referral if you chose to go that route.

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