Berexco (out of Wichita) wants to lease Phillips 25-2S-19W at 1/8 royalty, $50/ac bonus. Need to read the lease carefully, but I assume I’ll need to ask for standard Exhibit A clauses, including no deductions. I will ask for 3/16th royalty or even higher with no bonus.
Wondered if anyone here has dealt with them and what your experience was.
Angela, this is the first posting I recall seeing about mineral rights in Phillips, KS. We have owned rights in 23-4S-19W since the mid-1950s. Very little activity except that I have to send a check each year for property taxes.
The last activity we saw (but never consummated) was a $20 bonus + 1/8th royalty per net mineral acre from Thomas Energy in 2010.
On the small map I have, I do not see your acreage — where are you located vs. me? Have you seen/heard of renewed activity in the county?
Thanks for the reply. Poor Phillips county is pretty lonely at this board.
From the section map I go by, sections 23 and 25 are kitty-corner from each other.
A relative of my mother bought the mineral rights to two sections in Phillips county way back in the 1930s and she inherited them. She has 2.57 acres in section 25, and 3.42 acres in section 36. Central Crude pays royalties on the Section 36 property…it’s not much, but it’s been pretty steady over the years.
Maybe with the new drilling innovations Kansas is trying to expand in oil production. I’m going to call Berexco to see if they’ll go for 3/16th and the Exhibit A clauses I always ask for. Will post here about how they respond, and if you want I’ll ask if they’re interested in leasing more acres, and will let you know. Never hurts to ask them if they’re interested in your tract.
What did you end up doing?
Phillips County had some great production back in the day. I’ve seen completion reports from the 1930s-1950s with initial production over 3,000 barrels per day. There is still exploration going on in Kansas. It may slow down a little with the price of oil having dropped so much in the past two months.
Matt,
I went ahead and leased with Berexco. No one else was asking to lease the tract, so figured it wouldn’t hurt. They agreed to the exhibit A clauses I asked for.
Thanks for the info, Kitchen. I hear all the time there’s plenty of undiscovered oil under us here in Kansas, maybe even on the land I’m living on in north central Kansas. There was a leasing boom in this area back in the early 1980s but nothing came of it that I know of.
Hi Angela,
We own some mineral interest in this section and a week or so ago received a Summons, and documents of a Petition to Partition. I just posted something on this forum, but thought I would reach out to you to see if you received one, and if so, what are your thoughts are.
Funny, we own in 36 as well and are getting a little from Central Crude too…
Grateful for any info,
Van Representing Deaner & Co.
Hi:
I called Berexco to get more information and talked to their lawyer; he explained that because Berexco couldn’t find all the mineral interest owners for leasing in order to drill, they decided on the legal proceedings and can do so by Kansas law.
The lawyer explained that you don’t need to respond to the summons. The mineral interest will sell at a sheriff’s sale, and Berexco plans to buy it. All the mineral interest owners listed in the court case will receive a check for their portion of the interest, and if you want to be included in future royalties from the property, you can return your check from the sheriff’s sale to Berexco and they will lease your portion of the land.
That’s my best understanding of what’s happening, but you may want to give Berexco a call yourself. Their number is 316-265-3311.
Angela
Thanks Angela!! I was not sure and we have a lawyer looking into it, and plan on having a discussion with him today. I will call Berexco too. If I hear anything different (which I doubt), I’ll let you know. Wish I would have posted here first… Really appreciate it. Van
Van:
You’re welcome, and I would appreciate hearing any pertinent info you get on this case.
By the way, are you related to J. J. Deaner? My mother inherited her mineral interest from interest originally purchased by J. J. Deaner in the 1930s-40s.
Sorry Angela, I didn’t see this question. But we did get your email response to our letter we sent out. My wife was related to J. J. Deaner. I am doing most of the paperwork for Deaner and Co. and monitor the email. My Brother-in-law is the one who sent the letters and I forwarded your email to him. I will see him on Christmas, and I’m sure he will respond soon. Good to hear from you. Happy Holidays.