Antero signed lease

Oil and Gas Leasing Help
1

We signed a lease on 20+ net acres in WV with Antero. The landman said it was a pretty good deal.

  1. 18% on all oil, gas, and NGL’s from point of sale (I believe that’s the correct term)
  2. $4500 bonus per net acre for $90K+
  3. 5 year lease non renewable
  4. 12.5% post production cost; It was either 0% from the well head or 12.5% from point of sale

Another question is how long does it usually take from signing the lease to receiving the bonus?

Thanks for any and all input.

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Uhhhh, was that a landman you hired to work for you, or the landman working for Antero?

Not to be ungracious on the matter, but it takes me about a nano-second to get my bonus $, because I don’t hand over a signed lease without being handed a cashier’s check. I reckon I’ve seen too many train wrecks.

Now going on a century and a half, the oil industry is accustomed to receiving the keys to the car, without yet having paid for it. It’s a terrible habit.

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@UncleJed - ​Check your Order of Payment copy; it should indicate 60, 90, or 120 business days to receive your bonus check.

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You are getting 18% royalties paid to you at the mouth of the well? That should mean you don’t pay costs like transportation and storage. But what is the 12.5% post production cost?

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We’re getting 18% at point of sale with 12.5% PPC. We could have done 18% at well head with no PPC, but from what we found, it’s worth more to get it at point of sale.