I got a lease in the regular mail. Worst terms I have seen. $75 and 1/8th $50 15% $0 3/16 All are for 3 years plus 2 year extension. So they want you to elect something. My whole thought is wait until it is pooled and maybe there is a better offer. So, 2 weeks or so go by and they send the same letter certified mail. There is no time frame or anything on it. My feeling is they are sort of trying to pressure you to make an election. I still see no reason to respond at all. Wait till pooling? That letter will say you have so many days to respond , correct ? I don’t see why any one would sign an essentially 5 year lease for $0 and 3/16 until really forced to at pooling? Opinions?
I do not sign any of the letters like that proposing wells. In that part of McClain, I wait for a pooling order.
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OK great . Thanks for the quick response. When the pooling offer happens, do you suspect it may be better? When its pooled they still send me something to select an option within so many days correct ?
I doubt that the royalty terms will be better since the letter is usually what the terms will be. But the pooling has its own advantages. You have 20 calendar days in which to select your option once the order is released, so watch for it in the mail. Do you know how to get onto the online version to see it sooner?
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No. I don’t but that would be nice.
Where did you get the name of the well to be drilled as Pyramid? From what Ive seen, a company isnt going to waste its time sending out a 3+2 OGL if a well is going to be drilled in the next 18 months nor have a well name for it. I dont see any filings on those sections, only reason I looked is bc I own some poperty in the area.
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It is on the Capstone letter. Says Well Proposal: Pyramid 1-13-12-1-36XH Well. I have a pretty small interest in this, personally. I am excited at the fact they are spending 13.6 million drilling a well in this area. I have much bigger interests in the area that could really pay if they drill some more.
It makes me wonder a little ,why they would spend the money for a second certified letter unless they had something to gain by getting people to sign it . I may be overthinking it…