Energen is sending us a lease to sign for this property and we have no idea what we are looking at. Can anyone tell us about signing bonus’ for this area? And any do’s and don’ts before signing it. Thank you
I strongly recommend getting an experienced O&G attorney to work with you so that you get the best lease possible on all issues and not just bonus and royalty.
I am not familiar with Bonus rates in your area but a 25% royalty should be the number you are looking to get for that parameter.
Getting a "no cost" lease is also very important - this is where legal help will come in handy
Thank you so much for your advice
Section 77 contains some newly drilled wells, so I would highly recommend that you "shop" the property around to find competing lease offers, as there are probably a dozen companies that would be interested in leasing your minerals. Energen will likely say almost anything in an attempt to get you to sign with them at a lower bonus price, but with the current activity on the property, you have significant leverage to get a phenomenal deal with any company. You might consider reaching out to the forum sponsors to see if they have a list of companies that may be interested in leasing in that area.
http://marketplace.mineralrightsforum.com/ad-category/minerals-mana...
Best of luck!
Thank you so much Wolfcamp I will look into that forum as well
Attached below is a list of all permits in Block 77 of Loving County over the past 3 years. I would suggest that you use this list as a go by as to who you may want to contact about your lease and making a deal.
414-LovingCoBlock77permitspast3years.pdf (11.4 KB)I just received one name is he the only one with a permit for Block 77?
Rockman we also have interest in Lot 13 of Section 75 Block 33 H & TC RR Co Survey. Do you know if anything is going on there? We have interest in Block 77 and also this one. Will Energen give us 2 different leases and two bonuses or will they lump it all together? Thank you for all your help
Sorry that should have said Rock Man
Nothing new is going on in Section 75 yet but it is right in the midst of other horizontal drilling activity (including the Energen wells in Section 77 ( I have added their two completion reports - Razorback wells - below).
It appears that the section 77 wells may already include your leases - if so, this is a good negotiation chip to get better terms from Energen (or any company that wants to bust into the Energen unit). You need to dig into the details of these two units to see if it includes your tracts. Suggest you go the Tx RRC site and search for these two wells (use API number) to see what has been filed as to unit for both wells.
Lease terms for both section 75 and 77 should be similar since they are only a couple of miles apart in an active area. May as will let them lump the two leases together but don't let them give you lower price for one versus the other.
And get that lawyer to help you.
By the way, both the wells I am attaching are already producing
412-TXCompletions5df0e9a69f434044b47bb04c1553473d.pdf (20.2 KB) 413-TXCompletions5bd6ef5ef114449c889fb7223513b372.pdf (20.1 KB)You have been so helpful I appreciate it so much. I haven’t gotten the attachements yet but I will await them and look over everything. You have a great day
Did the attachments come through? I can see them on my posting
I have not gotten anything yet, I keep looking but there is nothing there. Would you mind emailing them to me at marka4588@yahoo.com. Thank you and I will let you know as soon as I get them
Connie
Sending them now / they are coming from a yahoo email account
please let me know what you get them
Trying to add these two completion forms again so others can see them
410-TXCompletions5df0e9a69f434044b47bb04c1553473d.pdf (20.2 KB) 411-TXCompletions5bd6ef5ef114449c889fb7223513b372.pdf (20.1 KB)Thank you so much
Rock Man is there a site I can go to and find out if there is any activity on Lot 13 Section 75 Block 33 In Loving and Ward County? I would appreciate any help you might be able to give
Connie,
This link is to a permit that has been submitted by Energen Resources for approval. This well goes through Lot 13:
http://webapps.rrc.state.tx.us/DP/drillDownQueryAction.do?fromPubli...
Clint Liles
Looks like Clint has answered your question. The Tx RRC is the go to public site to keep up with things
Have you leased yet?
What kind of bonus did they offer you?
If not, let me know ASAP and I can give you my 2 cents.
I am very active trading in this area?
Nelson Spear