Just found this while surfing. Pages 10 and 11 depict their acreage held. Page 10 talks about a 2% avg. override they have which the believe will generate $50M over 5 years. Page 12 breaks down their holdings including Crawford Co. of 1,100 acres. Page 13 breaks it down I believe the 'ORRI' percentages are the override they were referring to and its between 'Operated' and 'Non-Operated'. EVP believes the money is in the Utica, so we need to negotiate the best leases possible for ourselves. Enjoy the presentation....
Markkot- Thanks for the post. Now all we have to do is find someone to negotiate with which currently seems to be the biggest problem.
good find, Mark,
It seems like every time I start to think I understand this business, something like this crosses my radar screen. I hope this gets some dialog, because there are so many things about it that I don't understand that I don't even know what questions to ask on first reading. Anybody out there have any direct experience with EV?
It just irritates me as to how many people put their hands into your pockets. Gov't with the taxation, 'snakes in the grass' with their royalty overrides. Let alone, needing the patience to allow the time for the exploratory wells to move in our direction.....
So a "royalty override" is basically just a markup from the original landman's high-profit lease to fair market rates? I apologize for being slow on this one, but I just don't have time to study it right now due to demands of the "real" market.
If that's the case, then at least we can use it as a discussion point if ever offered a lease.
Interesting. sidouglass. Yes, it would be problematic if properties were indeed 'tied up' by old Range or Atlas leases, but...
...WHAT IF the 'lease' RESERVED drilling depth BELOW 'x' depth (i.e. Marcellus+below) for the FUTURE DRILLING possibilities? Even though there are 'shallow wells' on a property, WOULD the below 'x' depth still able to procure leases unto itself possibly?
Also, IF a property was substantial enough to 'carry it's own weight' (being more than a possible contiguous square mile in various 'blocks')...would it 'hold it's own' in merit to be 'worth it's while' to address?
In such a case WILL a 'potential serious producer' FIND YOU?...or would the 'courthouse searchers' just see that & say to themselves, "Oh, that land is leased already."; and just move on? I would assume that they are just SO busy going over things in quick manner that this might be the unfortunate case. If it were YOU, what would YOU do in such a situation?...it's seems advantageously perilous, yet protected.
ORRI come out of the operator's interest. A ORRI owner pays no costs.
No secrets, it is a commin instrument in making deals.
Some cos sell a position and retain an ORRI .
thanks, melissa.. I had no idea what it was even related to.. But it's gone now, and that's great. My atty told me it went away when the lease was released back in July.