They have been posted
N Case said:
Mike,
Where/how are you getting the auction results already? I have not seen them posted yet on the Colorado web site yet. ( http://trustlands.state.co.us/Sections/Minerals/Pages/Auctions.aspx )
Just curious how you found out Diamond is representing PNR?
Ken Austin said:
It's official Diamond Resources is representing Pioneer Natural Resources out of Dallas. Permitting should start in the next 4 - 6 weeks for test wells.
Good Luck Everyone
Ken
Called them and they are now allowed to release that information.
N Case said:
Just curious how you found out Diamond is representing PNR?
Ken Austin said:It's official Diamond Resources is representing Pioneer Natural Resources out of Dallas. Permitting should start in the next 4 - 6 weeks for test wells.
Good Luck Everyone
Ken
After months of watching the price climb I have finally agreed to lease my minerals. 370 and 1/5 royalty. i know the lease sale went for 750 but i dont have a huge amount of acreage. Let all you friends know that a new floor has been set!
Mike, Who did you lease with? What township & range are you in? Whatr was the term, 5yr?
Mike rhymer said:
After months of watching the price climb I have finally agreed to lease my minerals. 370 and 1/5 royalty. i know the lease sale went for 750 but i dont have a huge amount of acreage. Let all you friends know that a new floor has been set!
yea its 5 year. i wanted 3 but when i got the 20% royalty and over 350 i said sold!
Did you lease with McDonald or Diamond or ?? Are you east or west of T48?
Mike rhymer said:
yea its 5 year. i wanted 3 but when i got the 20% royalty and over 350 i said sold!
Mike, where in kiowa county is your lease at.
I own ~100 mineral acres in Kiowa Cty 19s-50w and 18s-50w; have been contacted by McDonald, apparently on behalf of Chesapeake, with basic offer in the $150/acre primary and 15% royalty, 5+5 year term. I'm very new to this, although have done some research re. clauses, what to watch out for etc., and will ultimately engage a lawyer to review the contract once the basic terms have been agreed up. (Lance Astrella was recommended).
Can anyone tell me if this basic offer is reasonable, or should I hold out for more, and if so, specifically what? I'm having a hard time assessing the range of figures in these posts for the primary term (seems like from $75 - $400+/acre). Seems like 1/6 or more is reasonable on the royalty. The long term (5+5) seems awfully long and implies the lesser is looking to aggregate acreage and hold it for a while and not necessarily develop until perhaps prices recover????
PLEASE comment/offer suggestions on: Price primary; royalty; terms.
Much thanks.
Don,
This is competitive offer compared to what I leased from Diamond for and what I have heard others are getting. But you should be able to get the same terms but with 4+4 yr. 1/6 is what the state is getting from McDonald on their state leases, but I have not heard of any individual getting that (yet). In the standard McDonald lease docs it has in the "Order of Payment' a clause that states:
"McDonald Land Services, LLC retains the right to surrender the Lease associated with the Order of Payment at any time and for any reason. If the Lease is surrendered before payment is due under this Order of Payment, the Lessor may retain any consideration paid at the time of signing the Lease, but Lessor is not entitled to any additional amount. If the Lease has not been surrendered or payment made by the specified due date, then Lessor shall notify Lessee in writing and Lessee shall have 30 days from receipt of such written notice to make payment or surrender the Lease without any liability."
You should definitly cross this out of your 'Order of Payment' document.
I have heard that early summer is the time that some companies plan on starting the drilling process. Once they find where the good locations are they will stop leasing in the not so good areas. So you take a risk of not even getting any bonus money if it turns out you are in a not so good area. I signed my lease in January with Diamond Resources for a little less than $150, 15% and 4+4, they first started talking with me back in July. I believe Diamond Resources may still be leasing in that area, so you may want to contact them too. 701-572-4523, I dealt with Steve Armstrong there.
Don Hopwood said:
I own ~100 mineral acres in Kiowa Cty 19s-50w and 18s-50w; have been contacted by McDonald, apparently on behalf of Chesapeake, with basic offer in the $150/acre primary and 15% royalty, 5+5 year term. I'm very new to this, although have done some research re. clauses, what to watch out for etc., and will ultimately engage a lawyer to review the contract once the basic terms have been agreed up. (Lance Astrella was recommended).
Can anyone tell me if this basic offer is reasonable, or should I hold out for more, and if so, specifically what? I'm having a hard time assessing the range of figures in these posts for the primary term (seems like from $75 - $400+/acre). Seems like 1/6 or more is reasonable on the royalty. The long term (5+5) seems awfully long and implies the lesser is looking to aggregate acreage and hold it for a while and not necessarily develop until perhaps prices recover????
PLEASE comment/offer suggestions on: Price primary; royalty; terms.
Much thanks.
Hi Don-
I recently ( 1st was summer of 2011) received a revised offer from Diamond at $150, 4 & 4 @ 15%. I am SW of you below Arlington. I too am dealing with Steve Armstrong. Although Diamond improved (by expanding the provisions) their standard lease, I still am not satisfied. I would prefer to have a good lease that protects the lessor and take less of a bonus, if that was the trade off. I am no professional and only know what I have learned by self study. There is a lot to be concerned about i.e. Pugh clause, clean up after lease ends, delayed bonus payment, etc. This is a pretty good site for info; www.lookbeforeyoulease.org. You do not know about tomorrow, but I think offers will probably get better.
Ray P.
Don Hopwood said:
I own ~100 mineral acres in Kiowa Cty 19s-50w and 18s-50w; have been contacted by McDonald, apparently on behalf of Chesapeake, with basic offer in the $150/acre primary and 15% royalty, 5+5 year term. I'm very new to this, although have done some research re. clauses, what to watch out for etc., and will ultimately engage a lawyer to review the contract once the basic terms have been agreed up. (Lance Astrella was recommended).
Can anyone tell me if this basic offer is reasonable, or should I hold out for more, and if so, specifically what? I'm having a hard time assessing the range of figures in these posts for the primary term (seems like from $75 - $400+/acre). Seems like 1/6 or more is reasonable on the royalty. The long term (5+5) seems awfully long and implies the lesser is looking to aggregate acreage and hold it for a while and not necessarily develop until perhaps prices recover????
PLEASE comment/offer suggestions on: Price primary; royalty; terms.
Much thanks.
Our family signed exactly the same proposal on our 645 acres. Section (17) Township (19) SouthRange (51) West We were approached by McDonald with a much better offer, but it was too late. What should our next move be?
i put in the wrong section. It's section (30). I talked to a landman with Pioneer today, and he said they would probably start drilling in September. They have 2 permits to drill and one is close to us. I just learned about directional drilling and I would like to know if they are doing slant drilling. Does anyone know? The landman told me we need to pray that the price of crude oil goes up.
Lynn- I am curious why this landman said we need to pray that crude prices need to go up?? I mean prices are more than favorable for them to drill. Was the landman with Pioneer or with a brokerage? Did he say what formation they might be chasing?
I agree Jordan... $65 to $70. So they are chasing the Atoka Cherokee?? Not very familar with those formations. Is there any possiblity that the mississippi lime could extend into the Eastern part of Colorado?
Brittany Bynum said:
Lynn- I am curious why this landman said we need to pray that crude prices need to go up?? I mean prices are more than favorable for them to drill. Was the landman with Pioneer or with a brokerage? Did he say what formation they might be chasing?
Lynn Holland said: Brittany, I called P{ioneer and Jerry Ann I'd like to talk to someone who would gice me some nfo on what's happening. She gave me a number to call in order to talk to a landman. I got Rick, who was really nice, and he said to pray that crude oil goes up. I wanted to know when they might go for a permit for our section (30) . He said it would depend on several things. I am learning, but I didn't know enough to understand all he said. I don't remember his talking about "chasing any formation". What does that mean? Brittany Bynum said:
Lynn- I am curious why this landman said we need to pray that crude prices need to go up?? I mean prices are more than favorable for them to drill. Was the landman with Pioneer or with a brokerage? Did he say what formation they might be chasing?
Here's is the basic research from 1995 that is driving this exploration.
2930-LasAnimasArch.pdf (2.02 MB)