2 9N 8W offer Grady County

#1

jbrat0902

7m

We have been offered $2000 an acre from Turner Oil and Gas on behalf of Continental at 1/8 and $2750 an acre from Blue Chip Energy Partners in section 2 9N 8W in Grady County. Do these seem like resonable offersfor this section.

Thank you.

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#2

If that is an offer to buy, then I would consider it quite low since the leasing offers are in that ballpark. If it is to lease, then you need to ask what they are offering for 3/16ths, 1/5th and 1/4th.

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#3

It’s to lease and 2200 for 3/16 and 1750 for 1/4. Turner was 2000 for 1/8 1500 for 3/16 and 1250 for 1/4. Hope that helps

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#4

I usually gauge an offer by the pooling in the eight contiguous sections within the last year. I do not even consider 1/8th as the royalties are more important than the bonus money in most cases. You only get paid the bonus once, but the royalties may apply to more than one well.

Sec 1 May 2018 $5000 3/16ths, $4000 1/5th, $1500 1/4.

Sec 3 Oct 2017 $4000 3/16ths, $3500 1/5th $0 1/4. (out of my date range)

Sec 10 Aug 2017 $6500 3/16ths, $6000 1/5th $0 1/4. (out of my date range)

Sec 11 pending

Sec 12 Sep 2018 $5000 3/16ths, $4000 1/5th, $1500 1/4.

Sec 36 Sep 2018 $5000 3/16ths, $4000 1/5th, $1500 1/4.

The actual clauses of the lease are much more important than the bonus in my mind. The lease they will put in front on you will probably need negotiation to get more in your favor. I usually watch for no post production costs (none at all!), depth clause, no warranty, no two year option, no top lease clause, limit the shut in time and have a commencement of drilling clause-just to name a few. The Mineral Help tab above is helpful.

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#5

Thank you for the help. Turner said that Continental would not offer more than the original offer they made us, but as soon as we received the other offer from Blue Chip they wanted to see if they could beat it now.

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