Unleased and Wells permitted Washington 201, 202, 203

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?

Thanks in advance to the MRF gurus. Camille

Camille, Is your land between Flower Grove & Ackerly (N. Martin Co). Are you getting lots of letters offering to buy your minerals?

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.

Tjank you for posting