We received an offer of 250/acre with a 3/16 royalty. I thought that was a good offer. Is there any indication that the better the offer, the better the chances of a successful well? Is the company more sure that the well will be a good one?
Where in Creek Co ?
section 32, township 18 n, r 8 east
I show a John Botts having been pooled under order # 627090 Dated 6/24/14 so I am unsure why they would be sending you a lease agreement. This pooling was for a horizontal well. There has been a lot of leasing in 18n-8e by several Co.s in 2013 & 14. Viper Res. gave 20 & 22.5% royalty on some leases in 32-18n-3e. There is also strong leasing south of you in 17n-8e . I would get in no hurry and I am sure you will need to change some of the terms of your lease . Horizontal drilling is to increase in Creek Co.
We already signed the lease and received the 250/ acre funds. We were wondering how the nearby production numbers were closeby?
OCC web site is down
I just joined the group and I've learned a lot already.
We just received an offer of 200/acre with a 3/16 royalty for Sec.31-t16n-r8e, for a (3) year primary term, plus a (3) year option to renew, with $30,316.88 for signing.
We are new to all this and wanted to get your thoughts on this offer and anything else we should know before signing the lease.
Ron, you mentioned in the discussion above that there has been a lot of leasing in Sec.32-18n-8e
and 17n-3e by several companies in 2013 & 2014.
How does strong leasing for horizontal drilling in Sec.32 affect us in Sec.31? Has anyone heard about other leasing activity near us? Think we should negotiate for more $ per acre?
It is David Wallitz, a Landman from Schonwald Land Inc.,Oklahoma City, who presented the offer.
My husband Jerry and his sister inherited this land from their dad. His sister lives in Tulsa, but we live in San Diego.
We would really appreciate any information and insight that you could give us about all this.
Thanks again and God bless!
Do not take the 3 year option to renew. Actually, I would sit back and wait a little while. You do not want to be the first one to lease in your section because it will be low. If that is their first offer, it is almost always low. Strong leasing in 32 will most likely help you in 31.
80 acre spacing in 32-16N-8E received $100 and 3/16 in January. So your $200 may be good if they are going to drill at 80 acre spacing for shallow reservoirs. If they are drilling for 640 spacing, then you may be able to get a bit more.
As Ron said, you need to be very careful about the lease clauses. You want a depth clause, no deductions (or limited deductions if they add value), commencement of drilling clause, shut-in clause limited to 24 cumulative months, not consecutive, do not warrant title, no top lease and no extension or option clauses, etc. The "standard" lease they will send you is not in your favor, but it is negotiable. If you can't get what you want, then the pooling is fine.
I would encourage you to read the tips in the MINERAL HELP above, read the last few months in the Creek forum to get caught up to date, then move over to the Stephens, Garvin and Grady forums. They are in a different geologic play, but the folks on those sites are very knowledgeable. Filter through all the chitchat but pick up the tips on websites and strategy. I think one of those sites has a tips for newbies in their discussion area. You may have to expand down to find it. We are a chatty bunch….
This lease may last for 30 years, so it pays to get it right! The bonus is not the most important thing in horizontal plays.