Newbie here. I have recently been contacted by two different companies to sell my mineral rights in the J.A. Harper A-371, A-372 and J.W. Carpenter A-200 surveys. Their offers tripled a couple of weeks later. Anyone have knowledge as to why they are so interested?
Thanks,
I think you meant JW Carpenter A-220 (not 200). That survey is located between 371 and 372.
Vanna Production has leased acreage in all three of those surveys, and I believe those leases are among the leases that Vanna sold to Expand (formerly named Chesapeake).
The focus is a deep gas play located primarily in the Lower Bossier and Haynesville Formations. This is an extension of a large lease area that Comstock began in Robertson, Leon, and Freestone Counties. Mitsui and Aethon are also active in that area. Expand has extended the leasing into Houston and Anderson Counties.
The wells drilled to date often have expected ultimate production of more than 20 billion cubic feet of gas, with some exceeding 50 billion.
Thank you for your response Alan. I did more research this afternoon and figured that out. So now my question is if I didn’t receive or pay attention to receiving an offer to lease my minerals what happens with my interest. A lease was signed between Vanna and the TDC with the same survey I have in Section 3 so I have questions.
I can try to assist, although a little unclear on the question. First, I will say or ask, who is making the offer to purchase the minerals? Sometimes, operators or subsidiaries thereto, will go into non-producing area and first try to buy up larger chunks of mineral owners before they offer to lease. Once they’ve bought some good minerals, then they’ll go in and start trying to lease those that weren’t interested in selling. Additionally, you may see a “changing of the guard” regarding who is contacting you, maybe different company, but same person or colleague.
Now, to your question, are you saying that you may have missed an offer or opportunity to lease? Or, what happens if you are approached to sign and lease and you don’t?
Hi Kyle,
DSD contacted me and another individual (who most likely works with DSD). I know what happens if I do not sign a lease, if they explore or drill, then it becomes Working Interest instead of Royalty Interest, correct? I’m mainly questioning if I missed leasing, will I still be able to lease my interest? and I really do not recall being contacted to lease my interest. I usually don’t miss those. My mineral interest is in with 3 surveys that was part of the leasing Vanna executed with TDC so I was questioning why they were offered to lease but I wasn’t?
I was also questioning why they wanted my interest but Alan explained the why.
Thanks for any assistance.
Yes, correct, if you do not sign a lease (which they do have to make a “concerted” effort to lease you, so you shouldn’t miss that chance), it will become a working interest participating as an unleased mineral interest. I doubt you missed it, this area is a bit of a ways off from any current drilling activity. So, depending on the amount of net mineral acres you own, they may just attempt buying for now as it could take them a while before any actual development happens. Once they lease you, that starts their clock, so they may just be waiting in the wings. If they’re buying for the eventual operator, the operator will drill the acreage they own the most NRI first while they buy/lease others. You could always reach out to any other usual suspects in this area and ask about leasing. For now, I wouldn’t worry, you never want to be the first or the last to do something in this business. You have time. Hope this helps.
It certainly does help. Thank you for taking the time to answer my questions. Appreciate it.
Would you be willing to share the original and tripled lease offers that you received for others on the forum?