Chris, My family also owns mineral rights in 135 98 west-sections 7 & 18. Wondering where yours are and if you have received any offers since your last post? Thanks, Tom
Chris Schmit said:
I have browsed this forum quitely for the past year and know little about all of this, but here is my 2 cents. I'm sure there are more people who could give a better answer.
I own rights in T135 R98. Not a whole lot has been going on in these areas as we are pretty South of most activity. With the Tyler Formation gaining some interest, I suspect some leases will be happening, though I wouldn't expect any great offers as we are not in a proven area. There are two sides of this. I imagine a first lease offer will maybe be around $50 to $100 p/acre, 1/16, 5 years. You could try to negotiate for more, but without any decently producing wells, don't aim too high. You could also wait out for other people to lease and hope that they hit a good well near you so that you could negotiate a higher lease. However, if nothing hits near you, you may not be able to lease at all. Either way, it's a risk. Just make sure you are well informed before jumping on an offer. Speaking for myself, I have not been contacted as of yet.
Justin, I am new to this and wondering if you would be willing to explain some of the terminology you have used. "no cost royalties" does this mean there are no deductions? what is th benefit of a "draft in hand"?, and what were some of the other "basic concerns"? Thanks in advance for any time you can spare on my questions.
Tom
Justin T Olson said:
Sally, no I have actually received better offers as far as dollar amounts, however the best all around deal I have found has the same bonus but they are actually willing to give you a draft in hand, no cost royalties, and work around some other basic concernes. The landmen have asked me not to just post all of the information on here so i will honor that. I would recommend being more concerned about what would happen if they drill, vs the bonus offer.
Justin Olson
Thomas,
I am one of 11 owners of mineral rights in T135, R98 sections 8, 9 and 10. I am currently negotiating with a landman hired by Chesapeake Energy.
Chris
Mr. Olson, I am fascinated by the concept of a draft in hand being a plus. I have had a few drafts in hand, none were ever honored. Do not let the original executed lease out of your hand until you have cash.
Chris, Wondering how things are progressing with Chesapeake. Based upon the reports by others on this forum, they are developing a questionable reputation. You might want to look at a recent post by Cassandra Smith today on the forum for Hettinger County ND. It appears they just backed out on some folks. Also, google "chesapeake's black eye in Michigan". Tom
I have a tiny piece in slope that a company is offering $250 and 1/6th with 5 yr. In 136 98 as well.