An unsolicited offer for a lease in Kings County. Advice requested

We recently received a letter from the Onshore Leasing Corp of Bakersfield offering to lease our 160 acres (gross) parcel at Township 20 South, Range 18 East in Section 34 of Kings County.

The offer was for a 5 year term, paid in advance, at $40/ acre/year plus a 1/6th royalty.

I would appreciate any feedback as to the current production in that area and whether or not the offer is reasonable for that specific area.

Does anyone have any experience with Onshore Leasing Corp? Are they a serious player?

Like many of you, we live a considerable distance from the property and therefore have no current first hand knowledge of the local situation.

Any help would be appreciated.

OnShore is a known, reputable, group of landmen in Bakersfield which usually acts as an agent for principals, often oil exploration companies. You should find out who its principal is in the deal. The numbers feel low.

Mr. McNitt is correct. Onshore is a reputable company. I have been informed that they are exclusively taking leases for Vintage Petroleum, which is a wholly owned subsidiary of Occidental Petroleum. Oxy is a very large and reputable oil company.

Mr. McNitt is also correct that $40 per acre is low. Depending upon where in Kings County the property is located, rents are at least twice that, with large land owners able to negotiate more. Your negotiation power is related to the percentage of interst that you own in the 160 acres.

Hope this helps.

Jean M. Pledger

Many thanks to you both for such a prompt and honest response. I will do some more investigation and take contact with them again.

"Reputable" & "Landmen" should not appear in the same sentence.

Roger McNitt said:

OnShore is a known, reputable, group of landmen in Bakersfield which usually acts as an agent for principals, often oil exploration companies. You should find out who its principal is in the deal. The numbers feel low.

Does anyone have an email address for OnShore? I have some minerals I'd like to get leased.

Thanks!

Call John Sarad at Onshore. 661-■■■■■■■■

Susan Ikard said:

Does anyone have an email address for OnShore? I have some minerals I'd like to get leased.

Thanks!