[Hillbillyreefer]

Just opened the mail and found a rent renewal letter from Apache Canada offering a 10% increase for the next 5 years. Just sign on the line and send it back, done deal. Anyone else got a laugh out of that? Commodities have darn near doubled since the last increase, land values have probably increased 50%.

I like oil companies but FFS, at least send me a KY care package to start things out right.

 

[ilbar]

Wasn't Apache bought out by Ember in your area? They were here. Have to agree they can be some of the cheapest SOBS around. And the landmen they send out to talk to you would have no trouble sleeping in a grain auger.

 

[SKfarming]

Just opened the mail and found a rent renewal letter from Apache Canada offering a 10% increase for the next 5 years. Just sign on the line and send it back, done deal. Anyone else got a laugh out of that? Commodities have darn near doubled since the last increase, land values have probably increased 50%.

I like oil companies but FFS, at least send me a KY care package to start things out right.

I don't have the privilege of having easy money, but from what I hear people say is that a typical lease is about 3000, on about 3 acres of land. If this is the case, a 10% increase would be 100 an acre, or over 5 years, 500 an acre increase. Not sure what land values are in your area, but that increase gets from 25-50% of the value of a large portion of land in Saskatchewan.

Maybe I'm missing something???

 

[meritmat]

Would you prefer a reclamation notice hehe

 

[Hillbillyreefer]

Would you prefer a reclamation notice hehe

Sure. I've got a couple orphan wells too, gotta love those.

No Apache hasn't sold in my area. They have been put up for bids a couple times in the last six months, no bites.

I've never seen a company mail out lease renewals, they have always sent out a landman. Oh well.

 

[bud]

Encana always sends out a lease renewal in the mail after you send in a request for a rent review. At least the last few years. Here the values have not gone up much. Annual rent is based on loss of use (bushels X $/bushel) and adverse affect from farming around the well which has gone up about $200-400.

In Alberta cost of production has nothing to do with the loss of use portion, it is just gross dollars. Machinery, labor and fuel affect the adverse portion, but it is very hard to calculate and prove in front of a review board.

Because yields and prices have been high for a while that value is not going to change much. Pasture land should show more value with high beef prices.