What companies are working at leasing in Johnson County? I know that Continental was signing up several for Devon, but I was informed that that stopped early this spring.
I see your question was asked over a year ago but I have just found this site and joined to learn what I can.
My family has had two offers to lease our minerals (320 acres) located in Johnson County. The first offer was for $50.00 per acre this past February. More recently we have been offered $300.00 per acre and 17% royalty. The most recent offering is from Contex Energy Denver, Colorado. We have not signed a lease yet as we are trying to get a better idea of what would be a fair price and terms.
I have researched a bit and found the Wyoming State Lands website. There is good info located there in regards to lease amounts too.
I would appreciate any and all feedback in regards to what others in the area are getting for bonus payments and percentages.
Thanks
Scott,
Where in Johnson County are your minerals located? Contex is a broker that fronts for several companies, but mainly for EOG. EOG is active in SE Johnson Co. as well as SW Campbell and NW Converse counties.
The SE Johnson county area is pretty hot right now. Other operators are Samson Resources, QEP, SM (the old Saint Marys) and maybe Barrett. Devon and Anadarko are active in SW Campbell county if you are close to the county line. Most of those folks have regional offices in Denver. Royalty rates in that area should be at least 3/16 (18.75%). Lease bonuses could be in the $500-$1,000 range for a five year lease. Most will want an extension option for another three-five years....roughly at the same rate as the initial bonus.
If you are not in SE Johnson county then all of this is worthless, I do not have any info for other locations in Johnson county.
All just my opinion. Rob
Scott Swaney said:
I see your question was asked over a year ago but I have just found this site and joined to learn what I can.
My family has had two offers to lease our minerals (320 acres) located in Johnson County. The first offer was for $50.00 per acre this past February. More recently we have been offered $300.00 per acre and 17% royalty. The most recent offering is from Contex Energy Denver, Colorado. We have not signed a lease yet as we are trying to get a better idea of what would be a fair price and terms.
I have researched a bit and found the Wyoming State Lands website. There is good info located there in regards to lease amounts too.
I would appreciate any and all feedback in regards to what others in the area are getting for bonus payments and percentages.
Thanks
Rob, Thanks for the response. The property is in Township 46N Range 80W with 320 total acres.
I see from checking the map we are roughly in the south east corner of the County. That may explain the interest. They do want an extension after the initial lease expires (4 years) but are offering to double the amount if it gets to the renewal bonus. Assuming you are accurate on the going rates, the initial $300.00/acre offer is pretty good for a first offer and a good place to start. I'm not sure why they are offering to double the renewal bonus though, what is the point of that?
Scott
Scott,
It sounds like you are on the right track. Your location is a little more northwest than what I was thinking. They must be moving the play in your direction. On the rationale for the higher extension rate.Iit could be the initial bonus is too low...maybe the initial should be at the same rate as the extension payment.
I would also suggest you have an attorney look at the lease. The last lease we did had two and a half pages of addendum added to it. If you are in an area that is included, or proposed to be included, in a federal exploratory unit it complicates the lease. Local attorneys should be up to speed on this stuff by now.
Rob
Scott Swaney said:
Rob, Thanks for the response. The property is in Township 46N Range 80W with 320 total acres.
I see from checking the map we are roughly in the south east corner of the County. That may explain the interest. They do want an extension after the initial lease expires (4 years) but are offering to double the amount if it gets to the renewal bonus. Assuming you are accurate on the going rates, the initial $300.00/acre offer is pretty good for a first offer and a good place to start. I'm not sure why they are offering to double the renewal bonus though, what is the point of that?
Scott
Rob, Yes i saw we were almost in the center of the county not really southeast. I already have an attorney and will have them reviewing any potential lease and terms. I was mostly trying to learn what others in the vicinity were getting for their lease payment as well as the terms. your input is much appreciated. Scott