Oil & gas discussion group for those interested in Covington County, AL. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
Pruet Production Co. spudded Vick 33-9 #1 on 10-21-11.
How many oil rigs are in Covington county?
To my knowledge, currently zero in Covington County. You can check for yourself here: http://www.gsa.state.al.us/ogb/database.aspx
Lots of info here and pretty easy to find your way around.
There is leasing activity in Covington Cty by Pruett from Jackson MS. Last rate that I heard was $150 an acre and 20% royalty and strong provisions.
Hey Buddy,
There is quite a bit of acreage currently leased all the way up to Butler county including mine in . I leased mine to Midroc in 2009, seems Pruet is taking over part of the business from Midroc.I know Sklar has leases too.
You used the term strong provision, what does that mean exactly?
Thanks!
Thanks for the information.
Can a contract be just for a year? How dose that work? Or is determined by the company?
Jennifer,
Never say never but a year isn't very long. Companies typically try to lease a lot of acreage where they want to drill so another company can't come in if and when they are successful. To get all those contracts signed before they start drilling takes a lot of work. As far as leasing, typically an Oil company or an agent for an Oil company will contact you. A lot of the folks I know in Covington county signed a 5 year lease a couple of years ago. I signed a lease for 2 years with an option for the Oil company to extend the lease for 3 more years for additional money. Not a lot of upfront bonus money, I was more interested in the royalty percentage than the bonus per acre. There are a lot of things to be considered when signing a lease. If you actually own the property, you also have to think about your surface rights. I did a lot of research before I signed. There are also people who specialize in contracts for leasing minerals, depending on how many acres you are leasing, it might be worth hiring one to make sure you are getting a fair deal. The original contract I was given was a standard contract that is widely used in the industry. Guess which party it favored? A lot was changed before I agreed to sign.
Gentleman thank-you for the information.
Strong provision in Brooklyn, Alabama Going on for a while now. It seams.
Two new wells permitted in Covington County. One is being drilled as I post this.
Where are these two new wells located (sec. t/r)? Thanks in advance
Recordman, go to this link to find the wells.
You can look them up in the last 50 permits or just look up Covington County.
Thanks Dan.
Welcome Recordman.
Carl, check with county records office in Andalusia.
For all of my friends in Covington county. If you have mineral rights, you NEED to read this!
http://www.mineralrightsforum.com/forum/topics/why-your-royalty-should-be-based-on-gross-proceeds
Renpetco II wants me to sign a lease for mineral rights in Section 17.
Royalties are 20 %, but not on gross proceeds, as advised in your forum.
What do you know about the company and should I get a lawyer?