Covington County, AL - Oil & Gas Discussion

Comment

Comment by Jennifer McDonald on February 25, 2012 at 4:48am

Strong provision in Brooklyn, Alabama Going on for a while now. It seams.

Comment by Jennifer McDonald on December 4, 2011 at 1:23pm

Gentleman thank-you for the information.

Comment by Dan Bush on December 2, 2011 at 9:17am

Jennifer,

Never say never but a year isn't very long. Companies typically try to lease a lot of acreage where they want to drill so another company can't come in if and when they are successful. To get all those contracts signed before they start drilling takes a lot of work. As far as leasing, typically an Oil company or an agent for an Oil company will contact you. A lot of the folks I know in Covington county signed a 5 year lease a couple of years ago. I signed a lease for 2 years with an option for the Oil company to extend the lease for 3 more years for additional money. Not a lot of upfront bonus money, I was more interested in the royalty percentage than the bonus per acre. There are a lot of things to be considered when signing a lease. If you actually own the property, you also have to think about your surface rights. I did a lot of research before I signed. There are also people who specialize in contracts for leasing minerals, depending on how many acres you are leasing, it might be worth hiring one to make sure you are getting a fair deal. The original contract I was given was a standard contract that is widely used in the industry. Guess which party it favored? A lot was changed before I agreed to sign.

Comment by Jennifer McDonald on December 1, 2011 at 7:26pm

Can a contract be just for a year? How dose that work? Or is determined by the company?

Comment by Jennifer McDonald on December 1, 2011 at 7:12pm

Thanks for the information.

Comment by Dan Bush on December 1, 2011 at 6:01pm

Hey Buddy,

There is quite a bit of acreage currently leased all the way up to Butler county including mine in . I leased mine to Midroc in 2009, seems Pruet is taking over part of the business from Midroc.I know Sklar has leases too.

 

You used the term strong provision, what does that mean exactly?

 

Thanks!

Comment by Buddy Cotten on December 1, 2011 at 5:48pm

There is leasing activity in Covington Cty by Pruett from Jackson MS.  Last rate that I heard was $150 an acre and 20% royalty and strong provisions.

 

Buddy Cotten

 

Comment by Dan Bush on December 1, 2011 at 4:35pm

To my knowledge, currently zero in Covington County. You can check for yourself here: http://www.gsa.state.al.us/ogb/database.aspx

Lots of info here and pretty easy to find your way around.

 

Comment by Jennifer McDonald on December 1, 2011 at 12:28pm

How many oil rigs are in Covington county?

Comment by Dan Bush on November 3, 2011 at 10:54am

Pruet Production Co. spudded Vick 33-9 #1 on 10-21-11.