I received an offer to lease in 8-6N-2W in McClain County. The offer is for $125/acre bonus, 1/6th royalty and 3 years. The offer is from Capstone Land Company in Mustang (405) 743-9494. My family has all together only 5 acres.
Does anyone know of any lease terms anywhere nearby? Is anyone else leasing the area? Any and all information would be appreciated. Thanks!
Charter Oak Production in OKC has taken a lease there in the last year.
James C. Endicott in Edmond has done some leasing within the last three years.
Call both of them and see what they would offer.
3/16 royalty 300/5 years is what i had been offered or 175 for three yrs MCClain county is hot right now. I would ask for now that it's heating up......500 / 5 years or even double that. 3/16 is standard!!!
Cary:
I have 2 and half acres in McClain County, and leased it at Northwest Oil & Gas for $800 an acre, 3/16th Royalty, for 3 years. The person I talked to there was Cindy Hoffmann. They were a good outfit to deal with. I do not have thier phone number any more, but I believe you can email them at Northwest Oil & Gas.com. Hope this helps.
Dan Moore
I received an offer for $150/ac 3 yr 3/16 in 7N-2W . 3/16 from Capstone
Cary, may I ask, did you accept this offer? What happened? I, too, have been offered a lease by Capstone with similar terms, but in section 35.
Matthew, so it is acceptable to call other production companies to tell them what you've been offered and by whom, and ask if they would be interested??? How does that work? If one company decides to drill in an area, does that peak the interest of other companies to drill in that same section/area???
Matthew said:
Charter Oak Production in OKC has taken a lease there in the last year.
James C. Endicott in Edmond has done some leasing within the last three years.
Call both of them and see what they would offer.
Dan, are you saying that other companies often compete for leases on the same section/area of land? I did not know that you could call companies other than the one that offered you a lease, tell them what you were offered, and try to get them interested in offering a better lease to you on the same land. Is this common practice by mineral rights owners???
Danny Frank Moore said:
Cary:
I have 2 and half acres in McClain County, and leased it at Northwest Oil & Gas for $800 an acre, 3/16th Royalty, for 3 years. The person I talked to there was Cindy Hoffmann. They were a good outfit to deal with. I do not have thier phone number any more, but I believe you can email them at Northwest Oil & Gas.com. Hope this helps.
Dan Moore
Joe, any company/ individual who has leased acres in the pool/spacing can participate in the well that someone else is drilling, you could yourself if you had the cash and thought it a good deal. Nothing wrong with asking if they are interested. You might get $50 to $100 an acre more just for asking. Those who made the original offer might up their offer if you just tell them you are waiting on the offer from someone else. Even if someone else won't pay more royalty or bonus per acre, you can negotiate other beneficial clauses such as more than $1 per year shut in royalty with a maximum cumulative time of 2 years or so. There is alot than can be negotiated. Reading some of the blog posts will point out some things you would like to negotiate.
Joe Hebard said:
Matthew, so it is acceptable to call other production companies to tell them what you've been offered and by whom, and ask if they would be interested??? How does that work? If one company decides to drill in an area, does that peak the interest of other companies to drill in that same section/area???
Matthew said:Charter Oak Production in OKC has taken a lease there in the last year.
James C. Endicott in Edmond has done some leasing within the last three years.
Call both of them and see what they would offer.