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Notice of Oil and Gas Lease Sale

 

By Sealed Bids to be Received by 4:00 P.M. (MDT)

Friday, November 19, 2004

 

Red Crown Royalties, LLC invites bids for Oil and Gas Leases upon the following terms covering the tracts of lands hereafter described:

 

Bid Procedure

Bids must be written on the Bid Form and received in a sealed envelope bearing the notation BID FOR OIL & GAS LEASE(S) and the date of the sale.  Mailed envelopes should have a separate bid envelope inside; however, multiple tract bids may be in one envelope.

 

Bids must be mailed to Red Crown Royalties, LLC at P.O. Box 888, Littleton, Colorado 80160-0888 so that they are received before the 4:00 P.M. (MDT) bid deadline on the date of the sale.

 

NOTE:                   Bids that are delivered by Federal Express or by other methods must be delivered so that they are received before the 4:00 P.M. (MDT) deadline on the date of the sale at 1490 West Canal Court, Suite 3000, Littleton, Colorado 80120 (Red Crown Royalties, LLC street address).

 

TERMS OF SALE:

BASIC LEASE TERMS

 

·        Cash Bonus determined by Sealed Bid.

·        3 Year Primary Term continuing after production pursuant to lease terms.

·        3/16 Exclusive Royalty reserved to Lessor.

·        Delay Rentals of $1.00 per gross acre/year due in full before lease is issued.

 

OTHER TERMS OF SALE

 

·        Effective date of Oil and Gas Leases for this sale will be August 1, 2004.

·        Awarded leases issued on Lease Form enclosed herewith.

·        No bid of less than $5.00 per acre cash bonus will be considered.

·        Successful bidders will be notified within ten (10) days by Notice of Lease Offer.

·        Successful bidder who receives Notice of Lease Offer must remit full bonus consideration together with applicable delay rental within fourteen (14) days of Notice of Lease Offer, by Cashier or Certified Check.

·        Leases will be mailed to Lessee within thirty (30) days of payment.

·        Red Crown Royalties, LLC makes no warranty of title and reserves the right to reject any and all bids or require a surety performance.

 

DELAY RENTALS

 

Delay rentals are charges on gross acres versus net acres in order to fairly and impartially defray the costs of lease sales.  Red Crown is committed to minimizing the cost of each of our lease sales to industry participants and therefore does not require nominating or bidding deposits.  Additionally, we do not require direct charges for advertising or administrative costs of these sales.

 

 

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