We just go an offer of $500 an acre and 3/16ths for 3 years in Sec. 28-5N-7W and know nothing of the current leasing trend or drilling activity in the area. Anyone have any info they can share?
Who is offering? How many acres do you own?
We have 15 acres and the offer is from Calvin Energy
robert kelley said:
Who is offering? How many acres do you own?
Jim, Is Calvin asking for the 2 year option?
Jim Edwards said:
We have 15 acres and the offer is from Calvin Energy
robert kelley said:Who is offering? How many acres do you own?
Yes, at $750 per acre for two year extension, at their discretion upon expiration of the original lease period. Not sure we even want to consider an automatic extension at any price. A lot can change in 3 years.
Olvis Ray Strickland said:
Jim, Is Calvin asking for the 2 year option?
Jim Edwards said:We have 15 acres and the offer is from Calvin Energy
robert kelley said:Who is offering? How many acres do you own?
I feel the same way about the two year extension.
Mixed emotions both ways on extensions. If no one is drilling, the extension might be a good thing. On the other hand, if the extension is not exercised you don't get the quick cash. We have mineral rights that have generated more money from leasing than they might ever generate from a producing well. Lease runs out and some other probably near moron comes along and pays handsomely to sit on it without ever drilling. I love those near morons. (grin)
Olvis Ray Strickland said:
I feel the same way about the two year extension.
Calvin is leasing all over 5N-7W. I would think there will be a lot of activity in the future if good wells are drilled. I have a few acres in Sec. 33 below yours, and it has paid very well for a number of years. I personally wouldn't go for the extension. If they dont want to extend the lease you wont get paid anyway, and if they want to extend it and a number of good wells arround you are big wells you might get much more for your lease. I would ask for a little more without the ext. Thats just my take on it.
Thanks for the input Randall. I've pretty much come to the conclusion that with the wellhead price of natural gas being what it is drilling may not be on the immediate horizon. We went through this exercise with Chesapeake a few years ago on the same minerals. Got a huge amount per acre and they never drilled. We actually have appreciably more acreage that adjoins the 15 I mentioned, and my inclination is to take whatever we can get now and run like heck to the bank. If I thought they were actually serious about drilling they'd buy into No cash now and 1/4 not 3/16ths and they don't seem to be interested in that deal at all; implying to me they are hoping to broker the leases somewhere down the road and are afraid they can't flip them with 1/4 royalty to a future buyer.
Randall Mullican said:
Calvin is leasing all over 5N-7W. I would think there will be a lot of activity in the future if good wells are drilled. I have a few acres in Sec. 33 below yours, and it has paid very well for a number of years. I personally wouldn't go for the extension. If they dont want to extend the lease you wont get paid anyway, and if they want to extend it and a number of good wells arround you are big wells you might get much more for your lease. I would ask for a little more without the ext. Thats just my take on it.
Calvin has filed at least 3 leases for 1/4 in that section. I don't think they are flippers. They are tied to a company with very deep pockets.
Jim, did you end up leasing to Calvin? for the terms they proposed? We also have a pending offer from them for 5yr, $225/acre, 3/16ths. Thanks
Joan, how many acres do you own?
Not much, .40.
rbmineral said:
Joan, how many acres do you own?
Yes we signed the lease offer including the 2 year extension. Got a bit of surprise when the check arrived as it was drawn on an account belonging to a restaurant chain owner and dealer in securities. Pretty much confirming my suspicion of the leasing being speculative and likely to be brokered. But that fact is no big deal as we simply did what we have done in the past with leases in Sect. 28 - 5N-7W, we ran like hell to the bank and deposited the checks. Over the last 8 years we've banked around $75,000 from leases and no one has yet to punch a hole into it. Probably have made more from the leases than anything short of a gusher would have yielded. Continually reminds me of a scene from the movie "The Wheeler Dealers."
Joan Kershaw Putnam Trust said:
Jim, did you end up leasing to Calvin? for the terms they proposed? We also have a pending offer from them for 5yr, $225/acre, 3/16ths. Thanks
what is the name of the restaurant chain owner?
Ha! Thanks for the info...we'll do the same!
Jim Edwards said:
Yes we signed the lease offer including the 2 year extension. Got a bit of surprise when the check arrived as it was drawn on an account belonging to a restaurant chain owner and dealer in securities. Pretty much confirming my suspicion of the leasing being speculative and likely to be brokered. But that fact is no big deal as we simply did what we have done in the past with leases in Sect. 28 - 5N-7W, we ran like hell to the bank and deposited the checks. Over the last 8 years we've banked around $75,000 from leases and no one has yet to punch a hole into it. Probably have made more from the leases than anything short of a gusher would have yielded. Continually reminds me of a scene from the movie "The Wheeler Dealers."
Joan Kershaw Putnam Trust said:Jim, did you end up leasing to Calvin? for the terms they proposed? We also have a pending offer from them for 5yr, $225/acre, 3/16ths. Thanks
Jim,
I may be way off track but, I think you are confusing two different people in Norman.
Hal C. Smith and Associates is in the securities and oil and gas brokerage business.
Hal W. Smith is in the restaurant business with several chains.
What is the leasing going for in Grady county 4-7-7?
Does anyone mind telling what they got for a bonus in 5N-7W. Also have minerals in 6-4N-7W. Calvin Energy is the broker or who is making the offer.