1st time oil gas leasee

Newly contacted again by Purified Resources LLC (I can only find a PO box, no physical address) Previously contacted in 2022 by Kraken Oil and Gas wanted a 3-year lease but I decided not to pursue. Found this website to get some idea as to how to determine if lease offers are fair. Location: Township 26 North, Range 57 East, MPM Section 33: NE 1/4 Section 34: NE 1/4 Any thoughts or guidance appreciated. Ron

First, congratulations on receiving offers, Ron. I’m glad that you found the forum. As a Landman that’s in his 20th year of business as an Independent Contractor who has had many such conversations with mineral owners throughout the Rockies, I know that for a first time lease, there is a lot to learn. I encourage you to read everything that they send you carefully and ask lots of questions until you understand what each paragraph is saying and what each document that they propose is obligating you to do and not do.

As you ask the questions, how they respond will help you learn the intent and level of pressure that the Landman is under: are they a partner helping you get to where you can be receiving royalties, or are they a speculator, investor, operator or involved in some other way?

Kudos for you to come here and ask questions of others in your shoes as a mineral owner. I’m not sure whether Montana is part of the Rockies or North Dakota Chapter of NARO, but keeping reaching out and get to know other mineral owners.

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Kraken and Purified Resources are the main leasing agents in the area. Chord Energy is the operator for most of the nearby horizontal wells in the area. Section 28/33 and 27/34 are logical next spots for wells. Royalties on the previous leases in the last three years have ranged from 18-20%. I would want the 20%. Bonus amounts are not public. Would suggest that you have a good oil and gas attorney review any draft lease as the clauses in the lease are much more important than the royalty. The draft lease is to the benefit of the operator, not the mineral owner.

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