Gulf Exploration Lease Offer

Oklahoma Mineral Rights Pontotoc County, OK
1

Received a letter with a lease offer on 25-2n-7e from Gulf Exploration with options of:

  1. $100 per acre bonus 1/8th royalty
  2. $50 bonus 1/6 royalty
  3. or working interest option

We haven’t had a lease for awhile so I’m a little rusty, but moving forward we would typically not do working interest and minimize bonus/max royalty (didn’t see anything in the forum with going royalty amounts?). We haven’t received the lease doc just letter with options, but would request to attach exhibit for Depth, Pugh, No Deduction, Shut in, Indemnification, Title (no warrant and defend -strike if in lease).

Going to email Gulf Expl. contact as they have incorrect name on letter (we have mineral deed showing transfer to Deaner & Co). If need be I can send them the mineral deed??

So.. just throwing this out there (Martha??? haha), to see if there is any suggestions on bonus, exhibits, sending them the deed, etc.

Thanks in advance for any info.

2

I was on a well for gulf exploration just across the dam at lake Hefner Okc 25 years ago. That’s the same gulf exploration. I would not hesitate to work with them they seems to know what they are doing

3

The letter is for information. I never sign it as only the lease or the pooling is the actual agreement. Email for corrections on the correspondence and make sure the deed transfer was filed in the Pontotoc courthouse because that is where the land men do their searches. You can send the landman a copy of the deed.

The draft lease is likely not in the mineral owner’s favor, so will need some edits especially for no option to extend, no post production charges, depth limits, commencement of drilling, no warrant of title, indemnity, time line for shut in, etc.

The last pooling in the township in 2024 (sec 21) was for slightly higher bonus and royalty, so you can ask for 3/16ths and see what they say. Depends upon if the well is vertical or horizontal.

1 Like
4

That is good to know.

Thanks, Van Head, Manager Deaner & Co

5

Martha, Thank you so much for your response and sharing of you knowledge. I’m getting ready to respond to the company and will forward them the Mineral Deed along with the proposed royalty and request for exhibits/changes to the Lease when they send it out.

Thanks so much..