Ron, sent you my phone number in a private message :)
Ron McKenzie said:
Are you going to send your # ?
yes i have called it three times
I would counter higher than 850. They will probably take 850. I know they have before close by.
I think at $850 (going by my share being approximately 14.25 acres)....wouldn't that only be $12,113.00 signing bonus? That would also mean a smaller % of royalty shares right? I may be able to only get 3/16th with asking for a signing bonus?
From what I am gathering, the best bet may be $0 bonus and 1/4th royalty (based on gross proceeds, not net)? Everyone in the surrounding areas say that they are producing pretty well in the area....pooling may be a viable option too?
Mineral Steve said:
I would counter higher than 850. They will probably take 850. I know they have before close by.
If the bonus amount is "only $12,113.00" then I think you answered your own question and should go for 1/4 no bonus.
Oh, wanted to add in for everyone's info (and to maybe understand it better myself) what was disclosed on the letter from Nichols Energy Services (agent for Devon):
"proposes the drilling of the Frank 24-18N-2W 1MH Well in the referenced unit. The Frank 24-18N-2W 1MH Well is proposed as a 9,400' Mississippian horizontal test and possibly other potential formations. The proposed surface location is in the SW/4 SW/4 of Section 19-18N-1W with a BHL in the NE/4 NE/4 of Section 24-18N-2W." "Attached is our AFE which details our estimated dry hole cost of $1,655,500 and completed well cost of $3,934,300."
What the heck does all this mean and does this look good for mineral rights owners in Section 24???
If you are pooled they will list the different options and you can choose to go with one or split your acres. No bonus and 1/4 royalty was the highest royalty offered in the pooling for 22-17N-4W. The other choices were $850 bonus with 1/8 royalty, 750 with 3/16 or 650 with 1/5. But your pooling will be based on the leases are going for closer to your area.