Comment

Comment by Peter Schueler on January 12, 2011 at 9:58am

Scott, I suspect that Fossil Creek is just another lease aquisition company that must sell/assign their leases to a producer with substantial assets. This would need to happen before they can pay your bonus $. An important feature of these leases is the time that they (Fossil Creek) has your land tied up before the bonus is payable. The ones I've seen are 90 to 120 days. You must also define days, either calandar days (7 per week) or business days (5 per week). For instance, if the lease specifies payment in 120 business days you're looking at 24 weeks, more than 5 months. The lessee will have a significant period of time to learn more about the reservoir prospects in Harrison County as the results of current drilling become available. If these results are favorable, your lease will become more valuable and you get paid. If they are not favorable, your lease will have less value and will not be paid. It's like a poker game where one player, lessee, antes an IOU in the pot and the other, lessor, puts a signed lease in the pot. Then you deal the cards. The lessee has the right to fold his hand and retrieve his IOU, you don't.  To make it fair the lease would have to give you the right to refuse the bonus and terminate the lease if you think it's worth more.

Comment by scott jackovitch on January 12, 2011 at 9:48am

Thank you James.  Any info you can pass along to us will be greatly appreciated.

Comment by scott jackovitch on January 11, 2011 at 5:13pm

 James what is your opinnion of Fossil Creek ?  Do you believe after speaking with them that they are for real ?  I have a copy of there lease and there are some nice addendums.  I am wanting some more info to validate there true stake here in Harrison county.  Are they really capable of drilling and do they intend to ?

Comment by scott jackovitch on January 11, 2011 at 3:14pm

Thanks Tom,  they are offering 1500/acre and 15% or 2000/acre paid out over 5 yrs and 15%. Has anyone heard the same thing?  I talked with them earlier and thats the offer they made .

Comment by Nate on January 11, 2011 at 3:14pm

Just busting your chops Jim - this forum gets a little too formal sometimes, hopefully no hard feelings from your side as well.

Something else I thought of is: who we choose to be our partner ie; lessor deems a lot on how much headaches there will be later on. Personally in my encounters with chk I think they are a not so upfront and honest entity. And will railroad anyone or thing that gets in their way. You could have things spelled out in a lease crystal clear but I wouldn't doubt they would try to find a way to weasel around it if it benefitted them.

Comment by Nate on January 11, 2011 at 2:18pm

James point is to sign up with him and your row will be perfect! Haha. But who's to say that these people didn't say any facilities are to be mutually agreed upon. As a producer I always meet with landowners regarding pipelines and tank batteries, well locations etc.

Comment by tom dowdle on January 11, 2011 at 2:07pm

Fossil Creek Energy from Oklahoma City. 3-4 employees.

Comment by Dan on January 11, 2011 at 2:05pm

Can you state your point again James? I'm not sure I understand what you are getting at.

Comment by Dan on January 11, 2011 at 12:19pm

I just learned that a pipeline right-of-way is actively being secured to pipe production from the Buell Well about 3 miles westward to a connection with a transmission line.  Chesapeake apparently wants to have that well in real production by March.

Comment by scott jackovitch on January 11, 2011 at 11:57am

I was told the name of the driling company is Fossil Creek Energy.  Anyone have any info ?

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