Good luck to everyone in Washington County on the various lease renewals coming due this summer / fall. I personally can't believe it's been 5 years already. For me, it's been a really good 5 years and the lease money I received in 2012 is a part of that I'm sure. I hope others are still enjoying their bonuses as well!
I wanted to share with other SEOLA members that I was recently in touch with Jennifer Garrison / SEOLA. I asked if she'd heard any news concerning the possibility that some of the deals she put together in Washington Co. were going to be extended. She responded that she was currently "discussing" that with the O&G company in my group / deal and that she may have "news" within a few weeks.
I have a gut feeling that they may not want to renew exactly the same lease but that they will want to renew with some modifications. Personally I'd be ok with modifications as long is it wasn't much less bonus (per year) and for shorter term, maybe 2 or 3 years. Looking up news on them and such, I feel they are still strongly in the game and won't be willing to give up all the acreage they worked so hard to tie up.
I know it's also possible that they just won't want to renew at all, I would guess that Jennifer would look for other O&G companies at that point and we could be going through a similar process as back in 2012. Lots of waiting, meetings, nervousness, etc.
When I hear news I'll be sharing what I can here. I do anticipate that good things are coming again, soon. I wish everyone lots of good luck!
ps: Hi Steve and Rose, hope you are both well. :-)
Good to hear from you Steve. I sent you a message. :-)
As a landowner that is partially tied in with the Merlin well in Lower Salem i can tell you that the royalty money is a joke.They (edgemark) charge you (instead) of paying for natural gas and it will cost you big time. At times the deductions for transportation and productions exceed the total royaltys for oil and gas combines so you wont get a check at all..If you renew keep this in mind.If natural gas could not negativitely affect the oil price i would be about $80,000 dollars wealthier per year
Hi Darren, was your lease done through SEOLA as part of the large groups that signed with them in 2012 / 2013?
But your well is actually through PDC right? Because your lease was traded or sold to them? I would also think they are throttling back with the market flooded and prices so low. I sure hope you see better returns when the market improves.
The checks are still coming from Edgemark...I dont think they sold the well as is is producing quite well..Even at low oil prices the oil payout is very good..roughly $200 to $300 per acre but after the natural gas production and transportation costs more like $50
Hi Darren, are they taking out deductions on gas from your royalties on the oil so you aren't getting hardly anything in royalties on the oil either?
And you are in the same well as Steve?
that is correct...about deductiond.....im in the Merlin unit..Not sure where Steve is though.
Thanks Darren, discouraging to hear this. Honestly, I was not sure of some of the things in our lease, but I thought I must be mistaken. I guess I wasn't. This feels shady.