Replies to This Discussion

Permalink Reply by Allen Pierce- Getting closer! on July 29, 2009 at 3:47

Hi adubu,

You replied to an inquiry of mine a few weeks ago while I was trying to figure out how to get offers for leasing my property in Shelby County. So far I have received offers from Devon ($500 and 20%) and from Family Gas and Oil for ($500 and 25%). Devon implied to me that if I don't get leased and they drill, then I may be out of the game because they are planning small units. What is your take on these offers? And are their other contacts I might make to get better offers that you are aware of?

Thanks for your help- Allen

Permalink Reply by adubu on July 29, 2009 at 3:58

where are you located and how many acres of minerals? They all play games to get you to sign. If they drill small unit and make a good well-GREAT then your minerals increase in value to lease >Bonus> % R and better terms. If you are close to the COG's Pettet wells talk with them also. The companies that are most active I see in area are COG, EOG, XTO, SWN,Common Resources, DVN,and HK. To me the most inportant part of the lease is % royalty (you want 25% if possible) and the terms of lease like vertical depth pugh clause, royalty free gas and oil,etc --then before you sigh have a good oil&gas attorney review because you may live with this lease for ever

Permalink Reply by Allen Pierce- Getting closer! on July 29, 2009 at 5:18

Thanks for your reply.
The property's legal description is as follows- Shelby County, Texas Abstract A-726, Clement Tutt Survey, Block 0, Tract 50, 10.5 acres.

I have gone to the websites of most of those you mentioned and emailed them asking if they are interested in an offer. I will wiat for now. One question I have- If Devon drills in my area and I leased to SWN instead of Devon, then do I still get royalties?

Sincere thanks- Allen

Permalink Reply by adubu on July 29, 2009 at 5:29

yes if you are in the unit. most wells are JV with other co. the operator and the other non-op WI. Your division order would come from who you leased with and they are responsible to pay you your royalties. The operator of course would want 100% of the leases so 100% WI controll.

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