hihi, one can hear a lot out there, huh. You’re right on NGS.
72 page Assignment, Bill of Sale, and Conveyance filed on May 17, 2019 between APACHE and RED WOLF ACQUISITIONS LLC…
Includes Section 12-6N-7W leases and the Monty well…
Not sure why it has not been cross-referenced with the section 12-6N-7W… maybe soon.
Thank you, Don_Bray.
Hi Don, Jan Cowley again. Triton Energy is trying to top lease our minerals in Section 12-6N-7W. They are offering $2250/net acre with 3/16th royalty. Do you think we should hold out for something better? This is less than what we received from Apache 3 years ago. Our lease is up 7-6-19. Thank you for your opinion.
Hey Janet, Are you held by pooling ( Apache ) to the Springer only? We are. They contacted us on that also. They are leasing for all other producing areas excepting Springer. Told them wasn’t interested in any 3/16ths lease because that tells ya that they are only gonna hold as investment reason when they offer no other options. Perhaps Don will have some different insight…
Hi Jan, we got the call from Triton also. I have one brother who is pooled (25% royalty) in the Woodford that is being held by the Monty. Seems to be some law on the books that a gas well can be shut-in forever as long as the well has pressure to hold the pooling order. He is also pooled (25% royalty) in the Springer. Triton almost immediately offered him $2,000/acre plus 20% royalty for the remaining formations. However, the lease language is silent on the formations, which makes me think should the current pooling orders expire or be set aside he could go from 25% to 20% royalty on all the formations. A lot of things to iron out before he signs a lease with them.
Triton also offered my dad, other brother and myself the same $2,000/acre plus 20% royalty. We declined. Going to hold out for something better. I have seen a couple of recent leases for 25% royalty plus a strong Exhibit “A” and we are leaning that way this time around. I just need to start making some phone calls.
FYI - Triton has 4 new leases, Red Wolf has 1 new lease and Echo Energy Partners has 1 new lease.
I do not care for top leases. I am attaching an article about the possible negative consequences of them. I prefer to let a lease run its course and expire on its terms. Too much can change in a few months. Quite often you do not get paid the full bonus for the top lease, only part until the first lease expires. An Overview of Recurring and Related Issues Involving Top Leasing.pdf (210.2 KB)
Also, 3/16ths is my low end of royalty options. I prefer a 1/5th or 1/4th lease as the royalties far outweigh the bonus over time (usually).
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Hi Jimbo, Thank you for the response. I think we are going to hold out also. The Landman is trying to make this sound urgent and I don’t feel that it is. Our current lease expires around the first of next month but we have received $0 royalties on the last lease so I don’t believe anything is going on there yet anyway. I really don’t know about the pooling.
Does anyone have any current news regarding leasing 12-6N-7W? I’m negotiating with Triton for a lease and trying to get 1/4 but they worn’t go above 1/5.
Apache pooled that section in January and the amounts were $705 1/8th, $660 3/16th, $355 1/5, $0 1/4. Mutual Mineral Partners, Echo Energy and L3 Energy have all leased that section at 1/4. Amounts are not listed.
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Thank you for the information.