I am new to this leasing and have a letter from Greensheel.
It is for $50 per acre and 12.5% royalty -
Area is T4N R9SW, S22 part of lot 8, all of lot 7 ; S29, lot 2; S29 lot 1; S 33 lot 2. Have 398.31 acres and net is 26.554.
We each have 1/15 of rights.
I am new to this leasing - any current info on rates - any help is appreciated - thank you so much!
GreenShell Energy is a brokerage working for clients in 3N 95W, 3N 97W, 4N 95W, 5N 96W, 4N 96W. I think the offers are about $ 50 / nma, 5 years and 15%. with 5 year options @ $ 100.
There has been some activity by others that I have not identified yet.
Thank you Ed - do you have any idea if this is reasonable offer? I looked at the map and there are no active wells yet that I can see.
I retalked with the landman - possibly can get 15% royalty and a 5 year lease tops without extension. They will not go above $50 per acre saying this particular area is unproven but enough data is there for an unknown Texas company to come in. The landman says he does not know the oil company's name.
Any feedback on this?
Thanx for any help - Cindy/zenbears - firstname.lastname@example.org
I was recently offered a 5 year $50/acre lease and 15% royalty from GreenShell. Area is T4N R95W and 96W if it's any help.
I am not familiar with what is going on in your area. Look on COGCC site under maps then when map opens click ZOOM, then type in the township and range exactly as the example shows. i.e 4N9SW (as you stated above in your post.) Then you can play around with the map layers to see a lot of stuff going on around there. Hope this helps.
Greenshell is broker in Denver. We saw offer from them last year in August. About the same terms and prices as yours. 4N 95-97W is now offered at $ 150 / nma and 3 years 3/16 Royalty. There may be some higher offers in other areas. Hope this helps.
T4N R95W and 96W We decided not to proceed with the GreenShell lease last month as it did not have a needed Pugh clause, shut-in limitation, improved pooling clause, better accounting to limit reductions from royalties paid, etc etc. We have had all of these in other leases.