Getting offers to lease and sell S3, 5N, 7W - are these offers good?

I am somewhat familiar with oil and gas and a family friend has asked me to help them with leasing or selling their minerals in Grady County, Ok. I own minerals in other states but haven’t done much in Oklahoma. The family friend is getting a lot of offers in the mail and they are asking my advice on whether these offers are good or not?? I don’t know how to recommend to them whether this is a good offer or not, any help or resources would be greatly appreciated!

Is 3/16 royalty and $3500 per acre good for this area for a lease? it seems pretty high compared to the pricing Im used to seeing. Thanks again!!!

Welcome to the forum! Some parts of Grady have quite good lease bonus rates. They should ask what the offers are for 1/5th and 1/4. The bonus may be lower, but the long term payout could be higher if multiple wells are drilled. I just looked up the current leasing patterns and quite a few leases have been filed in there at 1/4th.

If they are getting quite a few offers, then that is a good sign of pending activity. The most critical thing here is to get a good lease. A bad lease with a high bonus will lose money in the long run. They will need to get the most favorable lease clauses by adding an addendum and and strike the unfavorable clauses from the proposed lease. The first lease template they receive will most likely be in the operator favor and not in the mineral owner favor. You can probably get a good lease if several folks are trying to get a piece of the minerals. May take a couple of iterations. Read the Mineral Help tab at the top. Critical items to consider are no post production costs (not with the however… clause), limit the shut in time frame, depth clause, no warranty of title, commencement of drilling clause, no top lease clause, no option to renew clause, just to mention a few. (not giving legal advice…)

Thanks M_Barnes for your feedback and advice, so I should ask them to bump the royalty up higher, but you think that $3500 per acre with a higher royalty is acceptable?

Just FYI, I leased in 2&11 7N7W Grady County 3 years ago for $4000 and 20%. If you have a lot of mineral acreage, you might get a better deal by splitting it up into 3 annual payments. It cuts down on Uncle Sam’s share, and sometimes gets a better bonus. Time Value of Money… If you are drawing SS the Uncle Sam cut will cost you if the acreage is large enough…

Can’t say what top dollar would be, but that offer is much higher than a couple of years ago.

Oh wow! That’s almost double the current offer, thanks for the info rockiesoilman. Do you mind me asking where you got that information and whether or not it is reliable??? Also were those bonuses in the same area or section?


Is there anyway I can get on a call with you. We have been offered 5k an acre on rights that was left to my stepmother and me. I am trying to get some help here. My phone number is(630) 667-3660.

Thank you

Rockiesoilman, I just created an account with Mineral Insight. I Cant believe that I didn’t know about this resource! Finally there is a free resource for owners to easily research lease and sale prices. They also allow you to list your property to try and get more offers to lease. Very cool. they had a good demo of their product on their homepage too.

I am so glad that I posted on mineral rights forum or I never would have found this resource!

I would use Mineral Insight with a grain of caution. It can give some of the data, but not all. But then again, no one has all the information except the companies that are leasing and they are not telling.

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What is the current lease price per acre in Grady county section 17 3N 7W Thank you

Who are some landmen that would be interested in buying forced pooled (6+ acres in section 4-7N-5W next door to section 3. Richard Whittington

Richard: Did you ever work at the Phillips refinery in Old Ocean? Jim Brock

Please post over in Beaver county and put the section, township and range.

A post was split to a new topic: Leasing activity in 19-T3N-R21E

I hadn’t heard of Mineral Insight either. Just looked at it over some. I’m leery of putting a bunch of info on there, just my typical anxiety. Slick website.

I found info on leases easily enough, but can’t find any info on any sales. When I hit the “sales” button on that upper right area, it say “no matching results” no matter where I select.