I signed 2 leases in 2016 which expired this year. One I re-leased, and the other was held by production, I thought. The well was spud a couple of days before the lease expires, in June. Yesterday, I got a call from a
landman, representing the oil company who spud the well, wanting me to sign a new lease with a effective date of June 19, 2019, the day before my original lease expired. On the RRC site, I found 3 wells permitted, on 8/19/2019. The original lease had a problem letter that I could not get the link to work for, and has been amended.
The new offer is 25% royalty, 3 years, $1,100 bonus per NMA, of which I have 3.3074. The API numbers are 31742171, 31742512, and 317425 13. The amendment is for a stacked lateral parent well, depth 10605, Sprayberry, T&P RR, 35 T1S 14. Total acreage is 747.91.
Is this one of those situations where I could stay unleased and get 100% after costs are met? Or should I ask for a higher bonus and negotiate the terms of the lease?
No, I am in SE Martin County, 1.5 miles from Stanton. Yes, lots of offers. I turn them over, staple them, and have scratch paper pads. I have horizontal wells with XTO in Midland, and I don’t want to miss out in Martin, so selling is not on the table. They wouldn’t offer to buy unless they were planning to make a profit!
For MRF education and comparables, I wanted to let interested parties know what happened when I called the landman back. I told him when I extended my lease with Parsley in April, we used the form Buddy Cotten negotiated for me in 2016 and I got an $8,000.00/nma bonus. Well, because I was annoyed with their poor offer, I told them Parsley paid $10,000/nma, and those were my terms. And, that I had noticed the effective date, but that I was really an unleased owner. He laughed, and said he told his boss it was a waste of time to offer me the Producer’s 88 and $1,100 bonus, but they overruled him and said to try.
Word to the wise-landman or the head landman are not working for you unless you are paying them.
When we talked today, he said they agreed to all of my terms.