Thomas County, KS - Oil & Gas Discussion

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Comment by Ed on April 3, 2012 at 8:49am

I have knowledge from last week of Apache offering $175/ac and a 1/6 royalty in Thomas Co. to one of my relatives.  I will post more as I get additional details

Comment by Ed on February 16, 2012 at 6:13pm

TC,

I dont know the relative prospectivity of the Thomas Co area vs others, but no company simply leases with hope that it turns out well.  They have reasons for spending the money to lease the property and drill wells.  

Comment by Charles Matter on February 16, 2012 at 6:06pm

Thanks Ed. What are your thoughts on how the area Thomas or Sheridan will do if drilled? Are they just trying to get land under lease and hope it turns out good?

TC

Comment by Ed on February 14, 2012 at 8:34pm

The person with Manhattan Energy who contacted me was Jordan Kramer.  His phone is 682 201-0894.  (the broker working for Sandridge)  You may want to contact him to see if they are interested.  

Comment by Dale Bastin on February 14, 2012 at 8:25pm

My property they are looking to lease is in Sheridan County KS.  The company is Ritchie...they have other ground leased in this area but I have not found anyone who will tell me what their lease was worth.  I do know they are looking at a 4sq mi block which tells me they have something fairly specific targeted.  They have not yet contacted me a second time but I'm sure they will.  Would like to bargan for more than $15/A but really interested in getting a commitment to more than 12.5% royalty.  Any thoughts on what one could ask for regarding the royalty?  Would be nice to have Sandridge competing with Ritchie but have not had any contact with them.

Comment by Ed on February 14, 2012 at 9:27am

Sandridge made the only offer I have received.  I'm not aware of any other operators leasing in Thomas Co. 

Comment by Charles Matter on February 14, 2012 at 9:20am

Dale/Ed,

Is the sandridge the only operator leasing in Sheridan and Thomas? Dale were you talking about Cheyenne County Colorado nin the ? Dale in that article it talked about new acrage that Sandridge is trying to aquire, do you think they are talking about Logan, Sheridan, Thomas County? 

 

TC 

Comment by Ed on February 6, 2012 at 1:20pm

Dale,

Since the first offer the same brokerage company has approached me again and increased the bonus to $45/ac. but they wanted to increase the lease term to 5yr lease w/ a two-year option to renew at the same terms.  

The most important term in the lease is the royalty, which I was told was not negotiable.  While this may be true today, it may not be later.  

The lease form they proposed was also completely unacceptable. I declined the offer.  If you think about it, an option for the company to renew the lease at the same terms gains the landowner nothing.  If during the term of the lease the area has gotten more prospective, the company will gladly renew the lease at below market rates.  Thereby the landowner left money on the table.  Conversely if the area has been condemned, the company wont renew the lease.  In this case, the landowner hasn’t lost anything.  It's a no win situation for the landowner to grant the option to renew unless increased terms can be negotiated upfront. But even then you don’t know what the going rate will be at the end of the lease term.  Additionally, the lease form gave the company carte blanche on surface damages, water use, no Pugh clause and very liberal pooling language.

Ed 

Comment by Dale Bastin on February 6, 2012 at 11:30am

TC, I am USAF living in Colorado but my land is in Thomas and Sheridan Counties in KS. Selden is in the NW corner of Sheridan County. I know there is much interest and exploration occurring but didn't know what was a fair and reasonable mineral lease these days in our area of the state.  I have a friend who owns land in Cheyenne County and he was telling me they are offering $60/A for a lease.

Ed

I used the website you provided and found there are two producing wells, one 2 mi straight north and the other 3 mi north.  There is an old oil field approx 5 mi southeast of my property.  I know when I was a kid(late 60s), they drilled on this quarter which my grandfather owned at the time and it was a dry hole.  Don't know if technology has changed so that they might now find something that wasn't possible then?  Again, just looking to learn what I should expect in terms of a fair lease.  In Nov you stated you turned down a $35/A lease offer, has anyone returned with another offer?

Thanks guys for the sharing of thoughts and info.

Dale  

Comment by Charles Matter on February 6, 2012 at 8:49am

Dale,

Where is your land in Colorado? I'm with you on the Niobrara...it is NE CO. I believe the Mississippian has an extension that could go clear up to Thomas. Where is Seldon?

 

TC

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