Re: Caddo county OK. 12-10-10
In the past years of leasing I have only been offered 3/16. With all the activity going on there is a offer on the table that includes 1/4 royalty @ $50.00 per acre with the next jump to 22% @ $1000.00. Would $50.00 be a norm for 1/4 ? I know bonus amounts aren’t public and higher royalty would pay off in the long run I’m just curious about the amont.
May I ask which company presented the offer. I have several tracts in the general area.
MK & P Energy, LLC
Oklahoma City, Ok
The address on their website is a UPS Store
There’s lots of businesses in that building zoom in.
Depends on where the wells are. Section, township, and range.
Pooling orders can give a clue to bonus amounts. There are quite a few pending near by, but no orders yet, so not helpful yet.
The bonus is a one time payment. The royalties from a 1/4 lease on successful well(s) over many years will usually far outweigh the difference in the bonus amount. You can always ask for more on the 1/4, but don’t expect too much. If you have received the pooling letter, then that is a pretty good indication of what will be offered at the pooling.
The math on 25% at $50.00 an acre vs 22% at $1k an acre doesnt add up. Are you sure those are the offers?
Yes I’m sure it’s on black and white.