My family has been approached for our land in SE Lubbock county by Juno. They are concentrating on the Clear Fork shale, taking it from Crosby county to the west. We were offered $350/acre, 3/16th royalty & 3 years with an option. Has anyone else signed with them, or been approached by them?
Try to get a quarter royalty is my recommendation.
FYI, it is a dolomite, not a shale. Is your acreage on the edge of production? This is a depositional and trending formation, so I’d be real interested where your property is.
I will also offer, that 20 years ago, we drilled several Clear fork wells where Juno is now.
Who is "we", in the "we" drilled in the Clear Fork? In answer to your question, we are just east of FM 400, very close to Crosby county.
We drilled several wells on Forrest and Hancock lands twenty years ago.
The Clearfork is a slow producer and is notHing too fancy, but we did ok with it.
We is our investor group.
Juno is doing well on the Clark Wood lease. They are drilling on very close spacings and opting to move an ocean of fluid to skim whatever small amount of oil they can get. Some wells come in at 100bbl oil but with 1500 bwpd. They do not mind the ocean as long as there is some oil. No gang busters but must be decent return for them. Reportedly drilling and completing a new well every 7-8 days, with 2 drilling rigs going and 5 workover rigs working.
The Clearfork in the Crosby-Lubbock area is in fact a dolomite not a shale. Core slab on my desk is hard not flakey. Does not crumble like a shale would.
We counter offered on them and they came back with $350/acre, 1/5 royalty & 3 years.
Does the fact that this is a dolomite and not a shale matter much, and if so how does it matter?
They told us that it would not support a 1/4 "in this area", but offered 1/5, and $350/acre
Stephen Long said:
Try to get a quarter royalty is my recommendation.
Clearfork is dependent on structure and porosity, whereas the shale plays are blanket formations that extend over counties. Think of a productive Clearfork field as being a raised golf course fairway…well defined and confined, whereas the shale play would be the entire golf course!
If you miss the fairway, you will not be productive.
Hope my strange golf analogy paints an adequate picture.
Also, may I suggest that if that is their best offer, you may be at a stage of take it or lose it. Your choice. Best wishes.
What sound advice you get on this forum. Hold out for a 1/4 royalty and hope for the best!
Bobby G.