It's That Time Again!Township 2 South, Range 4 West Stephens County OK


#1

You folks were instrumental in assisting us in negotiating 2 previous Lease/Royalty agreements for the above tract.

2012- 3 years with Bearcat 2015-3 years with Recon Resources

Since the expiration (in 2018) with Recon Resources multiple offers to Purchase only (mostly from Aegis with language like “up to 5,000 per acre” or simply “call to discuss”) have been received.

I made a call or two and was told that very few if any companies are offering Leases/Royalties for mineral rights in our particular Stephens County tract.

A final important fact is we are under no compulsion at all to sell and would not ever be unless there were indications there will never be future offers to Sell or Lease.

Obvious questions: are there companies still offering negotiable Lease/Royalty arrangements? If so which companies.

Why have Leasing offers stopped (if they in fact have for most companies) but Offers to purchase still been received from several companies (Aegis, Ames Energy, Mayhawk) though none in the past few months?

What is likelihood no offers of any kind will be forthcoming?

Finally what would be a fair reasonable “per acre” Purchase Price?

Any help will again be hugely appreciated!

Temprock@hotmail.com


#2

I meant possible Lease/Bonus arrangements (not necessarily limited to Lease/Royalty arrangements).


#3

What section/parcel are you talking about?


#4

Mr. Baxter:

Township 2 South, Range 4 West, Stephens County OK.

Section 32-2S. Is this a “Parcel”? (Sorry for my ignorance!).


#5

You probably mean S2 32-2S-4W as that is how is it usually written.

There has been quite a bit of leasing all around you and includeing section 32 from 2017 to present. Only one in 32 at the moment. 52 corporation commission cases were filed in that township in the last 999 days, so fair bit of activity. (Any time I get offers to buy, that is a clue for activity behind the scenes.) 21 permits to drill were in the area. Closes one to you was a while back in 2016. Echo has a pooling pending in section 26. When that one becomes public, you will have a better idea of the sort of leasing offers. Continental Resources also has pending poolings in 25 & 26.


#6

You were soooo helpful in our last go round with this and now you’re doing it again! Huge thanks. Is there a particular company or companies that might open discussion about Lease/Bonus/Royalty deal(s)? As mentioned we are in no particular hurry to finalize anything but the Lease etc. in 2015 with recon was pretty cool!!

Thanks again.


#7

You might want to wait a month or so and then ask again. The causes that are pending now will give more information for a better answer.