"Formal notice of withdrawal"?

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Permalink Reply by Skip Peel- Independent Landman on December 3, 2009 at 10:46pm

Robert. Your section (27) is under HA unit order to Samson Contour. IMO, Mr. O'Neal's letter is an attempt at scare tactics. I would suggest that you not respond in any way to this letter. The unvarnished truth is that Samson Contour or whatever company will eventually develop your section will not wish to leave you unleased. I consider this an attempt to get you to accept an "opening offer". I suggest that you wait until such time as a HA well is permitted and drilling in your section. Keep two things in mind: One, there is no reason for Mr. O'Neal or Samson Contour to make you their best offer until a well is imminent, and Two, it is your option to lease at any time you choose including after a well is completed in your section. There are other considerations including the size and location of your tract within the section. Without knowing your specifics, this is the extent of the counsel that I will offer. Good Luck.

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Permalink Reply by Mac Davis on December 4, 2009 at 5:50am

Perhaps, but why send a notice withdrawing an offer that they never made in the first place?

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Permalink Reply by Checkmateking on December 4, 2009 at 8:13am

I guess thats why the letter says "if" you recieved an offer.

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Permalink Reply by The_Baron on December 4, 2009 at 9:03am

They may have sent out so many offers that they can't remember who they sent offers to.

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Permalink Reply by John Avatar on December 4, 2009 at 10:43am

I thought Mark O'neal worked for Chesapeake.

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Permalink Reply by RBH on December 7, 2009 at 10:17pm

is Mark O'Neal broker/agent for Chesapeake?

googled Mark A. O'Neal & Associates, Inc as per letter posted in the blog and got
http://markaoneal.com/content.cfm?id=29

((318) 221-0631)=phone number in letter and matched website

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Permalink Reply by JM on December 4, 2009 at 8:34am

Samson has recently completed a well in that section.

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Permalink Reply by ELLIS HUGH on December 4, 2009 at 8:59am

In my opinion,

Mark A. O'neal has been buying leases across a large area in the Haynesville Shale. They have numerous landman all making contacts, providing offers and sending mineral leases. Mark A. Oneal's client may have decided they no longer wish to pursue leases in a certain area and wished to formerly withdraw their offer. Usually, on large leasing projects, there is a database of names and properties to lease. Mark A. Oneal probably sent a letter to each name listed on the database.

I have had to do this a couple of times. But, we called each mineral owner and withdrew the offer.

I have no idea what happened here, but situations change and these things happen in the industry.

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Permalink Reply by Dion Warr on December 7, 2009 at 7:33pm

Followup to Ellis Hugh:

As a wise landman once taught me about contract law: "A formal offer to enter a contract stands until it is either (1) accepted, (2) rejected, (3) countered (which counts as a rejection of the current offer and the submission of a new offer, (4) withdrawn, or (5) expires (if no date or time of expiration is given, a landman should always anticipate that the timeframe that the offer would be considered will be longer than one would want it to be)."

If I had to venture a guess, the broker wanted to timely rescind any possible outstanding offers (perhaps due to the information supplied by Atlpilot, as sometimes mineral owners are willing to ride the well down only until one discovers a less than stellar completion, then would like to take the lease terms).

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Permalink Reply by Atlpilot on December 4, 2009 at 10:09am

Samson recently completed a well in that section that tested 5mm/day on a 20/64 choke. For the HS that is not a strong well and may have influenced their decision. On the other hand, that may have had nothing to do with the letter. The reason for you receiving one is probably due to one of the reasons offered by the experts on this site. I am near your section and currently unleased, so best of luck to both of us. Atlpilot.

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Permalink Reply by Robert Wayne on December 6, 2009 at 10:16pm

Thank you all for you replies.

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Permalink Reply by RBH on December 7, 2009 at 6:06pm

website for leasing company...I tend to agree with Ellis Hugh

http://markaoneal.com/content.cfm?id=29

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