Thanks for replying so quickly, Wilson Township. We just signed this lease, so production is scheduled to begin on July 12th. There is 20 acres and, according to Texas law, she gets 2/3 and the remaining 1/3 is split between 3 daughters and I am one of them. I had Jeff type a letter stating the bonus he spoke of. I can only parrot what he stated as I am not well versed in oil drilling jargon, but attempting to learn what I can quickly. He stated $400 to me alone and that is what is in the letter. He also stated LaSalle has oil production, but our acreage hasn’t begun yet. He said there were no dry holes in LaSalle as of yet and sounded very promising. I wanted to have the lease looked over by a professional, but the family didn’t think it was necessary as Chesapeake is very reputable and one family member felt well-versed enough. There is an extension option of 2 years. I don’t know how we are to be paid, I only know that he stated that our area “could” produce 500-800 barrels per hole which “could” result in $5,000-$8,000 per month to me alone. I did ask him if the oil stays were in LaSalle specifically, or just in surrounding counties that have “hit the news” as gushing oil and he stated LaSalle has had good oil production, so far.
We did have one lease, about 10 months ago, from some two-bit company that we signed with in haste. We were then contacted by Chesapeake/RedSky who were alarmed that we signed a lease already. They ‘checked with the County’ and found out the small Oklahoma firm never filed the lease, and this is null and void. I am not certain if that part is relevant or not.
While we are certainly not counting chickens as hatched, we would love to have some relevant info and reasonable expectations in something that we understand is, ultimately speculative.
Thanks for all you can tell us - it is appreciated, Wilson!