Replies to This Discussion

Permalink Reply by scott peterson on October 3, 2016 at 4:41am

Yup which also means that if they do end up drilling and you are included in the unit, the lease is considered paid up so the remaining delay payments are nullified.  Sounds like same deal they pitched me on.

Permalink Reply by Jan on October 3, 2016 at 9:27am

Scott and David,

This is what is going on right now.  I know someone who got the same offer from Eclipse if Ascent did not renew.  Ascent renewed - but on the same terms as the Eclipse offer.  $1K/acre - paid over 8 years. 

Royalty payments are better than delayed rental payments!

Permalink Reply by scott peterson on October 3, 2016 at 9:35am

5 years and 18 % I would have bitten on not 8 years at 15%. Ill wait.

Permalink Reply by Fast on October 3, 2016 at 10:58am

Scott,
Very wise move!! I'd wait it out too.

Permalink Reply by David Cain on October 4, 2016 at 8:35am

Jan,

Thanks for the information.  It matches what I have been hearing.  If the royalty percentage being offered now were in the 17.5-20% range with no deductions I would be more inclined to sign up.  But at this point I think I will wait a little longer and see what happens with all these leases coming up for renewal.  I am also wondering what Rex is going to do with the Warrior South acreage since they have done very little with it so far.  If another oil and gas company comes in and obtains this acreage they may want mine as well and be willing to make a better offer.

I rushed into the first round of leasing back in 2011 and could have gotten quite a bit more upfront money if I had been patient.  I have made several painful mistakes along the way.  I guess if I am going to make another mistake then I would rather it be because I am being too cautious.  I am just thankful that I have this acreage and an opportunity to better secure my family's future financial security.

Dave

Permalink Reply by BRT on October 4, 2016 at 9:09am

HI Guys,

I have been following your blog with great interest. I am wondering the same thing about Rex as I am in the Warrior South on the eastern edge of their acreage and my lease expires in July 2017. Where are you guys located in Millwood?  Jeff S

Permalink Reply by David Cain on October 4, 2016 at 9:52am

Jeff,

I'm on the eastern edge of the county on Barker Rd.  We must not be too far apart.  One of my neighbors leased with Rex.  The last time I talked to him, which was several months ago, he said that Rex was planning to renew his lease.  I don't know if that happened or not.  I don't live down there so it is sometimes difficult to keep up on details.

Permalink Reply by BRT on October 4, 2016 at 12:37pm

Thanks David, I hope your right. I am also on Barker Rd, I have the brown house with the big red and green barn. Stop by the next time you are down.

Permalink Reply by Fast on October 4, 2016 at 1:17pm

David
Don't be too hard on yourself. I think a lot of people would change things if they knew what they know now. Now that you know the game ... you can't be to cautious. Be patient and be glad you may have another chance in the future. If not .. you didn't sell your soul to the devil!!

Permalink Reply by David Cain on October 6, 2016 at 2:48pm

Jeff,

I didn't realize who you were or that our properties were so close to each other.  good to talk to you.  I will stop by and introduce myself.  Now that it is deer season, I will be down there fairly often.

Thanks,

Dave

Permalink Reply by Laura on June 22, 2017 at 1:46pm

Lots of activity by Eclipse! Scott wells are done with frac. Rig moved off Miller pad to Fritz. Activity on Finneran pad. Question to those that get around and talk to insiders. Any word on how the frac went on the Scott wells?

Permalink Reply by John on June 23, 2017 at 3:33am

Any word on the Yost wells?

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