Happy New Year, Everyone. My lease expired 12/28 on the above referenced parcel and I'm curious what the current going rates are for leases these days. Sure would appreciate any and all information in this regard. Thanks. Linton
Considering the location of your parcel, I am very surprised that it was allowed to expire. There is extensive horizontal activity in this area and this is also on trend with some very good recent industry deals.
I will not comment on bonus numbers but you should demand 25% royalty plus a "no cost" lease and Pugh clause.
I recommend getting an O&G lawyer involved to make sure your lease is written to best benefit you and your interests.
We re-leases our land north of Barstow in November . 15k per acre
Thank you, Cliff. That helps. Appreciate your response very much. Linton
Mr. Tomlin,
Not sure if this is good news or bad news for you, but I called the RRC and Jagged Peak spudded a well in September. Accordingly, I think that lease is likely being held.
Best Regards,
Mike
That (Jagged Creek spudding well) makes more sense than allowing leases in this area to expire.
My thoughts exactly. Would have made a great non-op interest!
Thank you so much, Michael. I was sent a well history report by someone else who found out the same thing. When I sent that report to the guy who made the offer he told me permits were obtained but no wells were drilled. I chose to believe my lying eyes! But now you have, once again, confirmed it for me. The bonus would have been nice, but heck, the well is okay, too, huh!! Either way I see it as a win-win. Thanks again, it was VERY nice of you to take your time to help me. Linton
With September spud, I would guess-timate that division orders will be received around the end of March / early April.
And I would expect multiple horizontal wells to be drilled that will include your lease in their drilling unit.
It just may take up to 10+ years for all the drilling to done and all the horizons exploited.
Thanks, Michael and Rock Man. Jagged Peak is a great company, in my opinion. When I was told that they were not going to drill and had dropped the lease, I was afraid it was not considered prime property. This one section happens to be my very favorite. I have an old blue-back gift deed from my Dad (a lawyer) from back in 1980 when he ran down to his office and gift-deeded his three girls a portion of this property because he was worried about paying all the taxes. The long version is a funny story. It's amazing how things can change so drastically from one minute to the next. Yesterday I was offered what I consider a large sum of money as a lease bonus. Next couple hours I was pretty sure the offer would not live through the night. It didn't, but in its place there was a little oil well. Ain't life grand....!! Linton
Life in the oil patch is pretty amazing! Especially in active areas.
Cliff, do you mind saying what section you are in. I have minerals in sec 213 Blk 34 that looks like it is NW of Barstow. I'm in process of renewing the lease and am interested to know if you are close enough to me that I may be able to get 15k per acre also. Thank you for your reply.