Hi!
Is it best to lease to the operating oil company? Canyon is supposedly going to do a horizontal well and are not budging on their 3/16th offer. (2n-9e). Mineralmen Land Co has now come in with a 22% royalty but hey are not the operator. Any advice is appreciated.
It does not generally matter if you lease with the operator. It is more important to get a good lease with terms you can live with. Each well usually has many working interest owners, but the operator is in charge of abiding by lease terms if a lease is flipped to them.
Thank you!
I agree with M Barnes. The operator will honor the Mineralmen Land Co lease. Leasing to the highest bidder or under the best terms increases the value of your acreage.
Thank you! I am new at this and your advice really helps!
Now the most important thing is to get a good lease. The one they offer you will likely be all in their favor and not in yours. Most of it is negotiable. You need NO POST PRODUCTION charges at all, not enhanced, not any! Also need a depth clause, a limit on the shut in time, a commencement of drilling clause, no top lease clause, no warrant of title and a few other tweaks. Friend me with the blue icon if you need help.
While I do agree with Martha that the lease form is the most important thing to concentrate on, I have found that the operator tends to be more responsive when I have negotiated directly with them. If you have contact with the in-house Landman, or even the brokered Landman dealing on behalf of the company, they will likely be able to provide more information throughout the duration of the well. If your priorities are to receive a higher bonus from the beginning and for the checks to keep clearing, signing with the non-op should have little effect. Good luck!
Thanks Chance. The operator landman would not negotiate which is ashame. Second offer is much better!
I leased to them. They paid quickly, but like so many others in Coal County they have yet to ptoduce. They are a legitimate furm
I tried to friend you but am new to this and my email went out without a message. I would appreciate help with the clauses you mentioned above.
I am a mineral owner in Coal County Section 32. Are you familiar with the Walkup Well 1-32H by Canyon Creek Energy. What can anyone tell me about this. Thank you.
Gary, At this time I see where the permit to drill has been amended to be a Horizontal well....I see no Notification of well spud(begin drilling) at this time.
http://imaging.occeweb.com/OG/Well%20Records/1DD65027.pdf
Clint Liles