Replies to This Discussion

Permalink Reply by Brad Wiley on October 10, 2011 at 9:27am

Hi, welcome, read everything on the site especially pertaining to Lawrence county that you have time for and educate yourself.....

Permalink Reply by Stephen Burger on October 10, 2011 at 1:04pm

Hey John,

This was in the New Castle News today, might be worth your time.

http://www.ncnewsonline.com/shale/x1402472623/Pulaski-prepares-for-...

Permalink Reply by JoKlause on October 11, 2011 at 5:50am

Curious John...what was the offer??  Everyone that already signed with Hilcorp would love to know??  Plus, I am from Pulaski..Marr Rd.  Where are you located?

 

Permalink Reply by Jim Litwinowicz on October 11, 2011 at 8:45am

John; I am affiliated with Co-eXprise and would am curious about the "better offer" from Hilcorp. What are the differences?  Be careful about the language in the lease and beware of loopholes.

 

I would like to sit down with you and compare the offers. Email me at landownerslease@hotmail.com

Permalink Reply by Dale Ross on October 13, 2011 at 6:45am

John and Jim,

 

I too would like to know what the offer Hilcorp made you consisted of in terms of bonus, royalty, and language.  Jim, could you post the differences from the co-exprise lease once you have examined them? 

Permalink Reply by Ragnars Repo on October 13, 2011 at 7:04am

I am going to talk to someone from hilcorp this weekend.Again this is all compleatly new and I know little about language. I obviously will not sign anything I am unsure of. I will give you as all as many details as soon as possible. I think the coexprise numbers were about $2700/12% and hilcorp is saying $3000/15%. Please don't quote me on any of this yet. I would hate to be perceived as an idiot so soon. You all
will have plenty of time to realize that on your own.

Permalink Reply by Dale Ross on October 13, 2011 at 7:29am

John,

 

The Hilcorp offer, through Co-exprise was basically $3000/acre and 17% royalties from the gross without deduction.  The language of the lease is very pro-landowner, in otherwords it protects the land owner's rights better than most leases.  This is equally important incase the O&G company sells your lease to another company.  The new company must honor the rights in the language of the lease.  I am interested to see if the bonus, royalty, and language is similar or if the bar has been risen and now Hilcorp and others are upping the anty to gain more acreage.

Permalink Reply by Ragnars Repo on October 20, 2011 at 2:23pm

Finally met with the landman from Hilcorp. The lease is for $3000/acre and 17% royalties with a water addendum. Obviously there are no deductions though.  I have not seen a copy of the Coexprise lease and i am curious about the protections. Other than lease transfer and royalty audits what more is coexprise offering. I only have 5 acres so i dont think a frac pad is coming my way, but i want whatever i sign not to screw my neighbors. Does the Coexprise lease have a depth severance clause? Are the protections offered by Coexprise as important to a person with small acreage?

Permalink Reply by 2s72s0k9mm8gd on October 20, 2011 at 2:55pm

Did Hilcorp give you the depth severance ? I keep hearing they gave co-x great addendums but no specifics. What part of the county are you in John?

Permalink Reply by Jim Litwinowicz on October 20, 2011 at 3:59pm

Yes, there is a depth severance clause.  Basically, Hilcorp has the rights to the center of the earth during the first term of the lease, five years.  Then they have the option to renew for and additional $3000/acre bonus payment.  After ten years, they lose the rights to any strata they have not drilled into.  Thus if a new strata becomes a hot commodity after fifteen years and they have not drilled it, the landowner can lease it to any company they want.

And of if one develops in year six or eight, they must develop it quickly or lose it. Talk about motivation.

Many addendum like no compressor stations or storage ponds are not necessary for smaller parcels.

I would be happy to sit down with either of you and go over the entire lease.

 

Permalink Reply by Ragnars Repo on October 21, 2011 at 2:19am

Jim, after speaking with the Hilcorp landman he gave me no indication that their intent is to sell lease rights. Since Coexprise and Hilcorp have been working together, do you see or have any indication that they are looking to do this? He really gave the impression that they are here to drill and do it asap.

Also thanks again to all on this site. Your information is greatly appreciated.

Permalink Reply by Jim Litwinowicz on October 21, 2011 at 2:24am

Hilcorp execs told me they will drill three or four wells next year and many more afterwards.

 

What is the offer? Is it $3000/acre and 15% royalty?  Thats what I hear those landmen are offering.

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