What kind of offers are being you all getting in this area of Garvin? We have and offer for $900 @ 3/16 with 5 year lease. Who does 5 years? We just signed a lease in Sec 27-2N-3W for $3000 per NMA @ 3/16 for 3 years. I know they are in different areas but not that far apart. How can the offer be this much different?
I do not do five year leases. Only three year. My last offer was in sec 23-1N-2W for $900 3/16 or $750 1/5.
The geology is vastly different between 1N-2W and 2N-3W. Very thin Woodford and condensate in 1N-2W and very thick Woodford and oil in 2N-3W.
I agree. Five years is not reasonable and not sure why this company keeps pushing for this. Unfortunately, they are only offering 3 year leases for $700 @3/16 and $550 @ 1/5. Your explanation of the formations is very helpful. I can see now why the offers we have received are so vastly different. Thanks very much
My offer was two years old, so not surprised if they went down a bit given prices right now. You can either take the three years or just hold off and wait. I usually take the higher royalty if I know drilling is about to happen. I take the 3/16ths if it is more iffy. I don’t see any pending orders near 24 right now.
Hmmm…yes, good points to consider. No need to rush and make decision right now. This offer has been hanging out there for almost a year now. Almost got a deal for $1500 nma but they still wanted 5 year lease. How does one go about checking on pending orders? Is this available at OCC website? We receive buckets full of notices from law firms every week. So many it is hard to keep track of what is really going on in real time. Thanks again for your insight and reply.
Open all those notices and file them by tract. If you get a pooling order, it only has a 20 day time limit on it. Those notices are gold mines of information. If the orders are pending, you can keep track of them on the OCC site by number at the OAP area.OAP
Or you can watch on the docket list by the date they say they will be heard and keep track of any postponements or recommendations.
Ms. Barnes, Thanks again for your wealth of information and gracious offering of your time.
We do open all the OCC notices and review them to see what is pertinent and make note in our property data base. But unfortunately, (or not) we have tracts in 29 counties in OK and the NMA ranges from .5 acres up to 6 or 7 acres. Most are around 1-3 acres. So you see keeping paper copies of each OCC notice for all the properties would require several new file cabinets and addition to office. We created a spreadsheet with all the parcels info, NMA, RI, and name of current producer. It seems to work but keeping notes current takes a lot of effort and time.
I think we will combine your suggested method, keep making notes in database and watch the docket as you suggested. I think this might be more manageable. As they say “there are lots of ways to skin the cat”. Still, I feel sorry for the cat. It is not a job I would want. I will stick to tracking these properties.
I hear you on the filing cabinets. I have many. But I have also switched to using Dropbox and making a digital copy of everything and storing it there. Backed up in the cloud. Relatively inexpensive to free. I am scanning everything in my paper files and also putting it in Dropbox under each tract.
That is an interesting idea. I am going to think on that and see if I can develop method for using current back up system. I like that. Thanks Have a wonderful weekend M. Barnes
We save our files on our computers to a hard drive back up and also to DropBox, so multiple safe places.