the logs from previous wells drilled in the area. good resistivity and great gas shows on the mud logs in the atoka.
r w kennedy said:
Our ownership was pinned down, we owned what was described in the lease. Diamond wanted to change the deal and lease fewer acres than my brother had negotiated for. It was not that he didn't own them. I think that Diamond figured that recording the memorandum of lease would remove my brothers options to lease to someone else and then they would renegotiate from a stronger position. Recording the memorandum of lease and then sending a counter offer is slander of title and setting up the emergency unlocatable mineral trust is fraud. It was not unclear to either side what we owned at the time of the lease.
Ken Austin said:If you’re in a complex ownership situation I would strongly suggest a lawyer. Once you sign a lease and Draft then they go to work to determine who "really" owns the rights if it is not cut and dry then you will have issues.
I own ~ 100 mineral acres in Kiowa Cty (18s-50w and 19s-50w area) and likewise have been approached by McDonald (landman); believe they're representing Chesapeake. I contacted Lance Astrella recently; seemed pretty up-n-up guy; short conversation but offered up a suggested counter-offer to what was being presented to me, and then said based on what came back, he could look over the contract and offer commentary at a rate of $295/hr with expected 2.5 hrs to be expended. Seems reasonable price to pay for some expertise/insurance. Indicated early offers last year were in the $25 - $50/acre range, although I have evidence of them being in the $60 - $75/acre range with a 15% and 12.5% royalty respectively, both with a 5 yr primary term and 4 year company option extension (at the same rates). Believe the primary lease prices per acre have increased since then, surpassing $100/acre and possibly more. Seem pretty stuck on 5 + 4 (or a 4 + 4) which implies likely aggregating acreage and perhaps not drilling for a while.
(1) WHAT SORT OF PRICES/TERMS ARE FOLKS SEEING NOW?
(2) WHAT COMPANIES ARE DRILLING OR PERMITTING IN THIS AREA?
(3) WHAT OTHER LAND-MEN ARE CONTACTING FOLKS?
Thanks immensely. I'm a novice at this and trying to learn quickly.
Offer from Mc/Donald approx Dec, 2011 was for $115/acre, 15% royalty, 5 year term, renewable 5 years... approx 100 acres in 18S, 51W, Sec. 25, E2. Had previous inquiry from Diamond Resources, no real follow up. Believe use of Astrella or comparable attorney is very wise; lots of nuances in this area of law, too easy for novices to be taken advantage of.
Don Hopwood said:
I own ~ 100 mineral acres in Kiowa Cty (18s-50w and 19s-50w area) and likewise have been approached by McDonald (landman); believe they're representing Chesapeake. I contacted Lance Astrella recently; seemed pretty up-n-up guy; short conversation but offered up a suggested counter-offer to what was being presented to me, and then said based on what came back, he could look over the contract and offer commentary at a rate of $295/hr with expected 2.5 hrs to be expended. Seems reasonable price to pay for some expertise/insurance. Indicated early offers last year were in the $25 - $50/acre range, although I have evidence of them being in the $60 - $75/acre range with a 15% and 12.5% royalty respectively, both with a 5 yr primary term and 4 year company option extension (at the same rates). Believe the primary lease prices per acre have increased since then, surpassing $100/acre and possibly more. Seem pretty stuck on 5 + 4 (or a 4 + 4) which implies likely aggregating acreage and perhaps not drilling for a while.
(1) WHAT SORT OF PRICES/TERMS ARE FOLKS SEEING NOW?
(2) WHAT COMPANIES ARE DRILLING OR PERMITTING IN THIS AREA?
(3) WHAT OTHER LAND-MEN ARE CONTACTING FOLKS?
Thanks immensely. I'm a novice at this and trying to learn quickly.
Hi Don,
I do not know how accurate it is but here is web add. that may help with question 2. discussions/2001-3000/2901-Kiowa.pdf.
I have 160 acres SW of Arlington. Diamond offered $150, 4&4, 15% but I think the Lease does not adequately protect me. I may counter. I contacted Paschal Energy but their operation is too far away for them to be interested.
Ray P.
Don Hopwood said:
I own ~ 100 mineral acres in Kiowa Cty (18s-50w and 19s-50w area) and likewise have been approached by McDonald (landman); believe they're representing Chesapeake. I contacted Lance Astrella recently; seemed pretty up-n-up guy; short conversation but offered up a suggested counter-offer to what was being presented to me, and then said based on what came back, he could look over the contract and offer commentary at a rate of $295/hr with expected 2.5 hrs to be expended. Seems reasonable price to pay for some expertise/insurance. Indicated early offers last year were in the $25 - $50/acre range, although I have evidence of them being in the $60 - $75/acre range with a 15% and 12.5% royalty respectively, both with a 5 yr primary term and 4 year company option extension (at the same rates). Believe the primary lease prices per acre have increased since then, surpassing $100/acre and possibly more. Seem pretty stuck on 5 + 4 (or a 4 + 4) which implies likely aggregating acreage and perhaps not drilling for a while.
(1) WHAT SORT OF PRICES/TERMS ARE FOLKS SEEING NOW?
(2) WHAT COMPANIES ARE DRILLING OR PERMITTING IN THIS AREA?
(3) WHAT OTHER LAND-MEN ARE CONTACTING FOLKS?
Thanks immensely. I'm a novice at this and trying to learn quickly.