Has anyone accepted a 3 year term lease in Sections 17&20-07N-04W McClain Co? Can someone recommend what is a fair deal for this area? I must of received over 6 different option letters all with different pricing and overriding royal reservation
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17/20-7N-4W already has horizontal wells. Sturgell wells by EOG. Are the offers for a deeper or different zone than the one you should already be getting paid on? I see a few recent leases at 25% by Plainview and FarWest Development. Bonus amounts are not public, but likely to be low since the royalty amounts were high. Better to have higher royalties paying out over many years than a one time higher bonus for a lower royalty.
If you are open to lease, then it would be very wise to have a good oil and gas attorney review any draft lease as they are rarely in the mineral owner’s favor. If an attorney is not in the cards, then you can wait for force pooling as that is a viable alternative. It has its own benefits.
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With competition you are more likely to get favorable no-deduction clauses, depth clauses. ect.
Notice: Informational only. No attorney-client relationship is formed by this post. I am an Oklahoma-licensed attorney, but this is not legal advice. Do not share confidential facts in this public space.
Are you sure you are getting new oil and gas lease offers? Ive never heard of a lease neogtiation and overrides being carved out from the jump?