Newbie

Hello all,
I am new to Lawrence co . I moved to the Pulaski area about a year ago.
I don't know what has transpired in recent years but a neighbor approach us
informing us of the coexprise signing. My wife and I were unable to sign due to work
so I thought I had missed a great opportunity. I was approached last week by someone
from Hilcorp with a better offer than the coexprise one. I am just a homeowner with a handful
of acres. Any advice on next steps?

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Replies to This Discussion

Permalink Reply by Ragnars Repo on October 21, 2011 at 2:29am
It was 3000/17%
Permalink Reply by Dale Ross on October 21, 2011 at 2:59am

Jim,

 

I was told by a coexprise rep that Hilcorp could only renew their option for the second term (after 1st five years) on the strata that they have explored (drilled).  The rep I spoke with said that they have all strata available during the primary term, but that after five years any strata not drilled would be released back to us.  Is that not accurate then?

Permalink Reply by Jim Litwinowicz on October 21, 2011 at 3:48am

Once a strata is drilled, it is HBP'd and no extension is necessary, even if in the first five years. If they don't drill in the first five years, then they have the option to extend the primary term for five more years and must pay a second bonus payment. That is only if they haven't drilled and are not paying royalties. But they could also determine they do not want the lease and terminate it after five years. At that point, you are free to negotiate a new lease with any company interested.

 

Who were you talking to?  I need to talk to him and clarify this for him.

Permalink Reply by Dale Ross on October 21, 2011 at 4:09am
Can I private message you?  I don't want to paste his name on this site.  If you give me an email address, I can forward his reply to me.
Permalink Reply by Jim Litwinowicz on October 21, 2011 at 4:13am
Permalink Reply by Ragnars Repo on October 21, 2011 at 9:11am

Dale, I was under the same impression. Please let me know what you discover.

Permalink Reply by Dale Ross on October 24, 2011 at 1:39am

John,

 

I don't know how to send private messages through this site.  If you give me your email address, I'll forward Jim's response to my email.  He cleared it up for me, as it was more of a misunderstanding of terminaology on my part.  What the coexprise rep told me was correct, I just did not understand the meaning of initial term.  I'll send it to you for your clarification. 

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