John Cram McClain County

Continental Resources leasing Section 4-07N-03W, Sec 9-07N-03W, Sec 2-08N-03W $250/acre and 1/4 royalty for three years. Very small acreage, 0.4 nma for all three areas. Is this the going rate? It is horizontal well and guess it involves only small part my land. How do you determine net acres. Thank you. J Cram

If you’re looking to sign for a 1/4 royalty, $250/ac sounds right for this area in todays market. Many companies won’t even offer a 1/4 in this area of McClain.

As for your net mineral acres, are you asking how you can verify that you own 0.4 acres? If so, you’d need to hire a Landman or attorney to do a title verification. Not cheap especially to confirm fractional acreage.

4 & 9 could be part of the same horizontal well, but section 2 would be a different one as it is too far away.

That rate sounds about right. for that area. Many leases have already been filed at 1/4. Do not do the three sections on the same lease, get three identical ones.

You do not have to lease with Continental, you can lease with anyone and there are others leasing in that area. It would be wise to get an attorney to look at any lease as the draft lease is rarely in the mineral owner’s favor and needs some critical edits-especially with regards to post production costs. You can also wait for force pooling since the acreage is so small.

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