Scare tactics or fact? Is Eclipse right?
Just received a second call from eclipse. The first call 2 months ago was to notify me that eclipse would be calling me with a new proposal on my existing lease with Oxford/Eclipse. Here is the scenario. 156 acres, Millwood twp., Guernsey co. Signed with Oxford 4 1/2 years ago, for nothing upfront, 12.5 % net.
My call today was threatening to say the least. "We are offering you 12.5% gross, no bonus, and that if we fail to re sign with them, we will not allow our lease to go by the wayside. My boss has paid too much money for this acquisition to let that happen, and we will put a shallow well on your property to lock in your lease and you will receive nothing." I have to say, we have been anticipating the new tentative lease we signed 2 years ago with Turner Oil, and this call today has not been a mood elevator. Can anyone suggest what we should do now. Our lease will expire in March.
I read from 1 blogger, Tom, that he told them to come back with a different offer, and they did. I know it's just business, but I take affront with this kind of forceful tactic, especially with Oxford doing what they did, (meager 10.00 / acre/yr./ 5 yrs.). I feel like I am going through the wringer 1 more time.
Any direction guys would be greatly appreciated.
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Replies to This Discussion
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Permalink Reply by Tom on
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It's funny you should say that. When I contacted Rex just a couple of weeks ago to inquire about a top lease, the land man made a phone call and called me back a day or so later. He said almost exactly, "They really want my property, but they are in negotiations with Eclipse right now to get some properties to finish out a drilling unit they are working on. Therefore they don't want to negotiate with me until January for fear that Eclipse would catch wind of it and scuttle the negotiations for the other properties"
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Permalink Reply by Mark Allen on
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remember together [the lessor's]....we stand and divided we fall. locals need to work together and get the best deal for the unit or for the neighborhood. Work with your adjoining land/mineral owners ...remember to communicate, prior to signing, is way better than after the fact.
lessee looks at it as .....divide and conquer
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Permalink Reply by bo boboski on
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In your area, You should be getting $7000. signing bonus, and 20% royalties,gross,no deductions,no enhancement clause. Anything less than that is unacceptable.Stand your ground!
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get yourself professionals, lawyer up with the best and be prepared.
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Permalink Reply by Soundcraft on
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Matt where are u located if u dont mind me asking? is there an enhancement clause in the lease.
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Permalink Reply by Bill Barnaby on
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It's nice to see someone getting more, thank you VERY much.
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Permalink Reply by Gusher on
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I just spent the last year going through the same thing along with a few of my neighbors. If you signed a top lease with Turner Oil then your hands are tied and they will drill a shallow well to hold it due to you not legally being able to sign a new lease with Oxford. This happened to my neighbor and they came in and drilled the week before it expired. I had 150 acres and did not sign a top lease with another outfit and was able to negotiate through a lawyer a fair deal including a good sign on bonus and decent royalty. regardless I would get a lawyer. bottom line I thought they were bluffing and would not drill and let expire but once they moved a rig in on the neighbor I focused fully on getting the best deal I could as once they poke a hole you are done
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