10N-8W-Sec 6 Lease Offers

My mom has about 36 acres in this T-R-S and are getting several offers for leasing. Her current lease expires in a month. The latest offer includes options at $3300/acre @ .25 royalty, $4000/acre @ .2, and $4200 @ .1875. Any info on actual drilling and finding in the area would be appreciated.

Cimarex recently completed the Gary 1H-3601X as a Woodford gas producer. It is a multi-unit well covering 36-11N-8W and 1-10N-8W flowing 30 bopd and 473 MCF/d. This well was tested producing over 2000 bwpd but the water production should decline significantly in the first few months.

Thanks for the info Stephen.

Be very careful about any new lease that you have NO post production costs. Watch for the "however" in that royalty clause that will put them right back in. Also get a depth clause, commencement of drilling, limit the shut in time. You will usually need a good Exhibit A to fix several bad clauses in the lease that are to the operator favor and not yours.

Would you mind advising who made this leasing offer? Similar offers have been made in T10N, R7W.

Now is a good time to review the terms of her current lease and try to get better ones the next time around. If she signed a "boiler plate" lease last time without negotiating any of the clauses, she can probably get improvements this time. Friend me if you need help on the ones that usually are "gotchas".

M Barnes, I have the same issue as the person who started this discussion. You need to give a seminar and educate those of us in this generation inheriting our parents mineral rights…until then may I make the same request? Last time boiler plate language was signed by my parents. I would greatly appreciate the benefit of your experience. May I send a friend request?

Yes, friend me and I can go through the lease with you. A lot of us are stuck with old leases, but given the chance to change, jump on it. Really old gross proceeds leases were pretty good, but the more recent ones have sneaky (non-friendly to mineral owners) language in them that the general owner doesn't know about.