Could use some advice on Inherited rights in Garfield County

Oil and Gas Leasing Help
1

Delta Energies managed to track me down and inform me that I have mineral rights to land in Garfield County. They want me to sign a lease. I had no idea I owned this and for how long I have no clue. What should I do and is this a reasonable offer for the area? Any advice would be greatly appreciated.

I just learned of mineral rights I inherited in Garfield County.

The courthouse records of Garfield County, Oklahoma, show that you own a mineral interest in the following tract of land in Section 2-Township 24N-Range 8W of Garfield County, Oklahoma: W/2 SW/4

This is a 9 acre spot. Delta Energy made these offers soon after informing me of ownership to these rights.

DeltaCore Energy Inc. is interested in making an offer to lease your mineral rights in this tract. Records indicate you own a total of 8.88888 net mineral acres in the above described lands.

Please consider the following terms:

A 3 year Oil and Gas Lease $600.00 bonus per acre 3/16 royalty provision on production 2 year option to extend lease for same bonus consideration

Or

A 3 year Oil and Gas Lease $500.00 bonus per acre 1/5 royalty provision on production 2 year option to extend lease for same bonus consideration

I am completely new to this and unsure if this is a reasonable offer or not? This couldn’t have come at a better time as far as money is concerned and I would like to act quickly. Any recommendations would be greatly appreciated.

2

I would ask for 9/40ths and $400.00 or 1/4 and $200.00/acre and stick to your price.

3

Have a Pugh and depth clause etc. on a separate Exhibit A.

4

Do not agree to the 2-year option. That bonus is “peanuts” for them, and they can tie up your land for 5 years with little spent to reserve it. If someone close to your land gets an oil producer and you sign for the extension, they can reserve your land for almost nothing. We make return from producing oil, not lease money. Are they DRILLING in your area? Find a company that is actively drilling near you.

5

Sandridge Exploration & Production, LLC and ARP Oklahoma, LLC (412-489-0006) have gas and oil wells around there.

CROUSE 2408 1-1H completed 2/26/14 shows 320 BBL oil/day and 1423 MCF/day gas.

Sandridge just started drilling (4/29/14) another horizontal well on Section 1. They may be trying to get all of Section 2 leased so they can drill it.

6

My partner and I own mineral rights in various parts of the U.S., including Garfield County, and we are active in buying and selling in situations similar to yours. I think it would be of mutual interest for us to make contact. I sent a “Friend” request, or feel free to email me: blcollen@yahoo.com, or call 303-378-4378.