Meeting with WKGD

 Were any of you in attendance at the meeting with KWGD on Monday at the PLCC. I was there and was totally surprised by the number of people in attendance. What were your thoughts about the meeting? I found it to be very informative.

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Replies to This Discussion

Permalink Reply by Finnbear on October 11, 2011 at 6:50am
The total is an important consideration to the next group negotiating in the area because it establishes a "market price" of what the O&G was willing to pay to obtain the lease. They can work with that number and incorporate their fee structure (if any) and get an idea of what the landowners may receive in the future.
Permalink Reply by scott peterson on October 11, 2011 at 5:39am
Paid by the O & G not by landowners.
Permalink Reply by scott peterson on October 11, 2011 at 5:38am
Cant say publicly Tom, but I can say it is extremely good all the way around!
09bp5t05myjl3Permalink Reply by 09bp5t05myjl3 on October 11, 2011 at 5:55am
I'm confused are we talking about the same offer , the $4,800 or $5,000 at 20% gross! is that with KWGD or is it differene with CARRIZO oIL thru Homeland??
Permalink Reply by scott peterson on October 11, 2011 at 5:58am
tom i friend req you
09bp5t05myjl3Permalink Reply by 09bp5t05myjl3 on October 11, 2011 at 6:01am
Thanks Scott I accepted
Permalink Reply by scott peterson on October 11, 2011 at 6:03am
Nelson beat me to it.  Carrizo/Homeland is different than the KWGD deal.
Permalink Reply by Nelson Roe on October 11, 2011 at 6:02am
Carrizo & Homeland is a different group with a different offer than what we speak of with KWGD.
09bp5t05myjl3Permalink Reply by 09bp5t05myjl3 on October 11, 2011 at 6:13am
does anyone know the fee structure for Homeland, I'm hearing that the fee is 5% of bonus & 1% of Royalty (not 1% of the 20%) but 1% off the top so landowner pays $250 per acre & really only gets 19% gross? is that correct?
Permalink Reply by Finnbear on October 11, 2011 at 7:22am
If so, they are getting 5% of everything, both pre and post drilling since 5% of 20% is 1%. By entering into a lease with those terms and assigning them a royalty interest, you are making Homeland a lifelong business partner. What are they going to do for you down the road to earn that royalty interest? Will they be in business that long? What happens if they go out of business - who collects that 1% (5%) royalty?
Permalink Reply by Nelson Roe on October 11, 2011 at 7:30am
If I remember correctly that is the structure for Homeland.  However as I said previously, KWGD does not take anything from the landowner royalties.  Their fee is a one time fee which in this case is being paid by the O&G company.
Permalink Reply by V Miller on October 11, 2011 at 7:47am
Can anyone disclose who the O&G company is behing the KWGD group?  Gulfport??

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