Help with a New Oil and Gas Lease Offer

Oil and Gas Lease Offer Section 6-17N-2W Logan County, Oklahoma

Any one know what the going rate is? Pinson Land Services on behalf of Alpha Energy is offering:

$125.00 per net mineral acre with a 3/16th royalty and a three (3) year term

Last time in 2011 my dad and uncle (elderly) got taken with a way low offer.

Based on prior 2012 research we may be part of the “Coral Project” here is an article citing Alpha’s interest in this area.

Any help is appreciated!



I feel unloved :cry:

I know they’re lowballing us, someone has to have an idea what’s going on in Logan County!

Thanks in advance!


Have you had any other offers?

Not since 2011. Per info on Alpha Energy’s website they are putting together a production project in the area of our rights.

If that’s the case I wonder if we would be better off waiting and getting forced pooled. I’m reading as much as I can on these topics, there’s a lot to learn!

All info and advice is appreciated!


Matt_L, I always ask for 1/4 royalty instead of 3/16ths. $125 per acre with 1/4th royalty on a 3-year lease term is an offer I would entertain. And make sure your lease has a No Deduction Clause.

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Offers are always based on competition. This isn’t a prolific area so doubtful to get many other offers, but you never know.

Thanks for the info all! From what I’ve seen there is indeed not much action in that area. The interesting thinf was the info on Alpha Energy’s website. Multiple references from Alpha about their “Coral Project” as a key production effort.

Our acreage is part of the Coral Project. I’m just wondering if this gives us better leverage even with the lacking competition.

It’s only 56 acres, how badly do they need us to make the project viable?

Thanks again!


I always ask what is your best offer, when are you pooling, what is your drilling time frame. I doubt you will get a 1/4th in that area, but never hurts to ask. I would take the highest royalty, but it might only be 1/5 or 3/16ths.

Thanks for the advice. They’re already at 3/16. I’m going to feel out the Landman. Hmmm, that sounds wrong! See if he’ll give up anymore info.
Per an Alpha press release:

“acquisition includes 31 well bores, five of which are active. The company intends to bring as many of the inactive well bores into production”

“recompletion in pay zones identified on geophysical logs but not yet perforated.”

“Additionally, the are undrilled potential locations on leases conveyed in the transaction”…

As I recall there was a test bore on our rights after the last lease, but it wasn’t a particularly big flow rate.

My guess they’re coming in and fracking the heck out of the area for a quick payout while oil is sky high.

Thanks for the advice, keep it coming!!!


That’s called a press release. If you believe it, you should invest with them.

LOL, yes, I get that, it does seem a bit encouraging that they mention this particular area and project no less than 3 times on their website.

I did a bit more map work and it seem our acreage is immediately north of Guthrie, OK. Most of the well activity in the area is in the section immediately to the West of our area. The Cimmaron River may cross our acreage or be immediately west of the acreage. Does leasing give them rights to the surface water? I seem to recall reading that somewhere in this forum.

If not drilling what other purpose is there to leasing the mineral rights?

Thanks again!


Martha, good to see You back on the Forum. Clint

Thanks Clint Liles. I’m back in the USA in TX.

I would be a little suspect of Alpha. Their website does not list their management and boasts of becoming an operator in OK (not very tough). They also tout a project in Rogers Co, OK, that alone should be a red flag. I would suggest waiting for the pooling in order to limit exposure. I have some mineral holding in 24-17N-2W. Good luck.

I agree, thanks for the perspective. Anyone can put together a slick website. I also suspect the Landman is a flipper. I’m calling him with lots of questions this afternoon. If I like his answers I may counter offer and see if he bites. If not, I’ll just make sure my mom’s info is updated with the county and wait for pooling.

I still don’t know the point of leasing rights if they never drill. I get that they need a consolidated chunk of acreage depending on the type of drilling and well. Is ther something else I’m missing?

Thanks again all!


Matt, I have been in this business for 40 years. I have properties in multiple states. In general, OK is not a State that you will see many put together large blocks of land for multiple reasons. If a landman hands you the line that they will not drill without a large block, that is “land speak” for the lease terms will not be good. If the bonus will mean something to your Mom, then consider accepting; otherwise, wait for a pooling which will supposedly provide the best offer accepted in the pooled unit. Good luck.

Thanks James! The landman hasn’t blown too much smoke to date. Just called and emailed with the terms. I’ve got questions for him this week when I call him. I will counter offer with a reasonable bonus and royalty. If he doesn’t go for that I’ll wait for pooling.

Thanks again all!!!


Offer to buy our mineral rights just cam in from the Landman. 27 acres at $1000/acre. Section 6-17N-2W Logan County, Oklahoma Immediately North of Guthrie, OK if I’m reading the maps properly.

Last lease offer was $175/acre 3/16 Royalty. I offered $250 1/4 but they refused to come up beyond 3/16, but did come up $50/acre on the bonus.

I have no idea what the sales values are. My aunt/cousins have the other 27acres and are considering selling.

As always any and all advice is welcome!!!



Usually offers come because someone knows something. An increased density was just filed in section 7, so that probably triggered the interest in the contiguous section. Hunting for about 1MM bbls next door in the Mississippian.

Thanks, Landman gave us a bit of a song and dance about Alpha Energy trying to decide between our area and another close by area to lease… It struck me as a pretty weak strong arm play. I’m inclined to ride it out to pooling at this time. $27K just isn’t life changing money, where as going into production could be a cash cow.

I’m working to clean up the trust/ownership now. Called the county, pretty straight forward Affidavit of Successor Trustee to get it into the renamed trust with mom and I as the trustees vs. mom and dad(deceased) as the trustees. Then we will likely transfer ownership to my brother and I, or should we do this all at once? I didn’t ask the county about ownership transfer. Am I getting in too deep and should get an OK oil attorney involved for the transfer?

Please advise and thanks!