Leased Property and Lease Renewals

Hi Everyone, especially BCLG members...

Does anyone have any information about the likelihood of Shell's leases being renewed when the 5 year period is up? 

What would be the reason they would NOT renew, and how likely is it that they will renew if nothing occurs in the next 3 years.

Our lease, signed through BCLG, allows for renewal of lease at the same rate as originally signed.

Since nothing seems to be going on in the area...what's likely to happen next? 

Trying to get a read on whether or not to sell the property with or without the oil and gas rights.

Thanks for your thoughts...

JMS

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Replies to This Discussion

Permalink Reply by Jon on May 23, 2014 at 2:03pm

they can let it go. they could renew it so they can sell it. they can drill.

Permalink Reply by Jon on May 23, 2014 at 5:20pm

they could have also leased it so that no one else could use it. in which case, if the let it go we can get the bonus money from someone else all over again.

Permalink Reply by randall gottus on May 23, 2014 at 5:35pm

 yes,  it's impossible to predict what Shell will do, and what their timetable is. But those oil and gas rights have real value $$$ now and many years to come...no matter what Shell does!  And there may even be other valuable resources not yet discovered "under that piece of land." ...just my opinion/unable to respond with any facts.

Permalink Reply by JMS on July 28, 2014 at 5:38pm

Thanks folks for your thoughts. 

I do know that the oil and gas rights are a BIG deal. Sometimes though life dictates a person's options.

Hanging on as long as possible.  Looking for any signs of hope...

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