I was recently contacted by Kalos Resources of Aledo,TX offering a substantial bonus and royalty for my mineral interests in Grady Co Sec 35 5W 6N. I cannot find out much about them and wondered if any forum members had worked with them or their owner Travis Hopkins successfully. Thanks.
On idocmarket.com in the Grady County document search you get 56 results when using Kalos as the party name.
The vast majority of the documents are oil and gas leases. Most of the "Exhibit A's" on his leases could use some major improvements I think. Although I saw one lease with a "Favored Nation" clause that I haven't seen before and might be nice to have.
The major clause's you want in an Exhibit A is:
1) No Deduction: (wording might be something like this) All oil, gas and other proceeds accruing to the Lessor under this lease or by state law shall be without deduction for the cost of producing, gathering, storing, separating, treating, dehydrating, compressing, processing, transporting, and marketing the oil, gas and other products produced hereunder to transform the product into marketable form. In no even shall Lessor receive a price that is less than the price received by Lessee or any Lessee affiliates thereof.
2) Depth Clause:
3) Pugh Clause:
4) Shut-In Royalty:
Plus 13 to 14 more you should ask for.
Thanks, Don, for the info. I'll take a look at idocmarket.com; I'm not familiar with it. I've found very little useful information on the web in trying to determine whether this company has any staying power or for whom they are leasing. Hopefully your recommended site or other members can give me some insight.
Great comments about the lease language. Fortunately, I've been doing this long enough that those
Exhibit clauses are second nature to me now. But I'm always learning. Also, I will try to get in the "Favored Nation" clause if I continue talks with Kalos...I haven't seen an oil company accept such language in many years.
The Grady market is SO HOT that the lessee's will accept ANY Exhibit A clause... !!!!! That's what I have experienced in the past 6 months... Be sure you have all bases covered - they are being accepted....
They had contacted me about leasing as well. The dealings seemed professional. They were looking to top lease and I was reluctant in case they began drilling before my lease expired (which they did). So, I didn't sign with them.
Thanks, Don. Can you please elaborate or tell me where I can find the other 13 or 14 I should look for in a Lease agreement/contract and the definition of these clauses? Any help would be greatly appreciated. Thank you again.
Here you go Ron... click on the link and then click on the images to make them bigger.
Thanks for the input, Megan. I’m not going to sign with them either. Can’t get enough info about them and other, better known firms are making similar offers.