Wilson, I always learn something new everytime I read your posts like what you said below about adding 2% Royality extension. Do you ask that as well as, increasing the the by 150-200%?
Kaye,
I like to keep some flexibilty to negotiate with rather than just dictate what I want in a 'take it or leave it' attitude. Without some flexibility the negotiations get really short which is not always a bad thing especially when I am the one being dictated to!
Extensions? I try to avoid them altogether but this issue is one that I remain flexible enough to negotiate on to keep from losing an otherwise good deal. My maximum time limit is two years for an extension and my minimum bonus is whatever the primary term was for if they will agree to a 2.5% royalty incresase over whatever was agreed to in the primary term on any well(s) completed during the extension. (I start out asking for a 2.5 % increase but will settle for 2%. Bonus and royalty are negotiable. The rest of the primary term agrreements remain in effect.) I assume that if they want to exercise the option to extend they are reasonably sure of finding production. I wouid rather have a little more royalty over the lifetime of the well than a few more bonus dollars now.
I know that not everyone will agree with this approach but it is what I have decided on for now. I am always willing to listen to different opinions (doesn't make them automaticly wrong) without being offended. Life is too short to waste time on being upset about someone elses different opinion.
Does anyone have information on Apache Oil co exploration in Hardeman co?
hey all, I have been contacted by a group that is offering to sell my mineral rights and/or sell my leasing rights at an auction coming up in late April. I have reviewed the lease terms that they would offer (very well written for the mineral owner) and the production company would bid on the bonus amounts. They will sell the minerals or the lease and charge the buyer a "buyers Premium" for their cut as commission.
It seems like it is a knowledgable and upstanding bunch, but didn't know if anyone else had been contacted or experienced this form of leasing your minerals. It seems like it takes the guess work out pricing the bonus amount.
Hope activity in Hardeman county is good, I just have 40 NMA but would like a monthly check off of them!
That is an interesting concept I have not heard. Where in Hardeman county are your mineral interests? How did this group know how to contact you? Where will the auction be held? Thanks for any information!
My minerals are South of Chillicothe. I they mailed me a letter. I think they said they would be doing the auction near Ft. Worth. It was going to be a real auction by you can bid online too. They explained that they are getting minerals/leases from Ft. Worth west to El Paso.
I hope this helps, it seems pretty interesting.
Thanks! Please keep us updated. The process makes me wonder if one might need an O&G attorney near?
I may have used the wrong terminology, my appologies. The way I understand it is you can either sell your mineral rights or the lease bonus. They (the auction company) provide a lease that is more favorable to the mineral owner than the standard oil company lease and then the bidders bid on your bonus per NMA. You can take the auction price or not. If you do the buyer pays their commission. If you don't take the auction price you are only obligated to list your minerals/lease with them for 12 months so they can try to get your desired price.
I have a call into them for a copy of the lease, but they said they had 8 or 9 additional paragraphs (depth clause, overpayment clause, etc.) that are not included in a standard lease.
Texan,
You talk about leasing but describe selling your minerals and/or leasing rights (executive rights?) at auction. Do you offer your own lease form with the terms you want for them to bid on? If someone buys your lease is it still subject to having title run on it before the deal is closed?
What is the name, etc of the group that contacted you?
This is a leasing process that is new to me so any thing more you can explain will be appreciated.
Wilson, I will keep you updated once I speak with them...
Texan,
I would not sign anything until you have talked to legal or past the informed people, Wilson and Riverdog, on this site. This sounds fishy to me. Just my 2 cents.
Thanks for the advice. I did get a copy of the lease, I sent it to my attorney and he just e-mailed me and his reply was "Very impressive contract, equally fair, protecting and rewarding both sides."
It seems that they have put a lot of real thought into their marketing too.
I would be a little wary of that new type of leasing, but who knows. I do know of they are contacting you about this now then if you can just wait for the land,en to come around probably with better prices and offers. If interest is being shown they will be there soon enough. Plus there is a lot of money being spent out there on exploration so they know something is under there. I wonder if the auction deal is an attempt to acquire and hold lease rights now for a lower rate to flip when and if it booms out there at a much higher rate.
Speaking of which anyone know of any new activity going on especially around Quanah? Sure would be nice of they found the Barnett reaches out there one day.
No new comments in a year. Are things really that quiet in Hardeman Co. lately?
I was recently approached by a company wanting to buy my oil interest in a small producing well we have in Hardeman. Lump sum proposed is about 5-6 yrs worth of royalty value (according to their calculations). Anyone have any experience with this kind of proposal?? Seems to be a bonafide company.
Hey Everyone I am new to the group. Does anyone know about the new well drilled approximately 2 1/2 to 3 miles Northeast of Medicine Mound? It appears on the map as a dry hole symbol? Also, does anyone have any info on Wind Energy in the area? Thanks
Silver Kollaid,
This is probably the well in Medicine Mound referenced in your info request:
In the discussion forum is a link for permits & such filed in Hardeman, welcome aboard!
Woops, Koolaid--typing isn't my greatest skill.
Thanks Richard,
It looks like it produced 76 barrels during the test period. Does it appear to be a good well to you? How does it compare to other wells in the area? Thanks