I have been approached by R&S Operating. I'm 3-4 miles north of Dellroy. The offer is variable but has a very low sign on bonus for any of the royalty options:1/8 royalty w/ $500/acre, 3/16 royalty w/ $375/acre or 1/5 royalty w/ $350/acre.
Thanks Brian, the 18.75 and 20 percent royalties haven't been seen in awhile. I am having a hard time getting Eclipse to budge above 15%. Did they say that is a no deductions royalty or is that with deductions?
Steven, the landman shouldn't be representing Eclipse, a merger between Blue ridge and Eclipse happened a few year back and was renamed Montage resources. Last year Montage merged with SWN.
Thanks for the correction, I was under the impression Eclipse had some association with EAP in the Carroll County area. Perhaps they had some acreage positions in common in the past or currently. The lease proposal I have does represent EAP Ohio, LLC. It is silent on partners or working interest participants.
As Joe said EAP is a Partner of Encino. Encino handles all the books etc. Many have said that EAP will not go above that 15% Gross but the signing but bonus should be much more than what Brian Werner was offered by R&S. The old days are gone. EAP does not do speculative deals but only leases what they plan to drill. You should want to be drilled. Who knows how much drilling be even be done in the future is the way I see it. It's like a needle in a haystack.