JR-Spojoeyoldtimer

Does anyone know if this is a good offer in Love county 7-8s-3e? I got an offer to lease and they wanted to pay 500 1/5 royalty 3 years option for two more same prices from Blue Baron Energy for Trailhead Exploration. Does anybody know anything about any of this? Thanks

Welcome to the forum!

I would not take the two year option. Too much can happen in five years. Offering the option means that not activity at the moment and they want to keep their options open and lock you in for a long time.

R.D. Williams is also leasing in that section.

The important thing to note is that the clauses in the lease are so much more important than the bonus money. The clauses last for as long as there is production, so could be decades. If you have never leased before, read the Mineral Help tab about and scan the forum for lease comments. The clauses that I pay attention to are NO post production costs, not “enhanced”, none at all, depth clause, commencement of drilling, no warranty of title, limit the shut in time, no top lease clause, no two year option, etc. Do not give them a lease without getting a check. If they need time to do a title check, then have a third party such as an attorney, accountant or bank hold the lease in exchange for a check. Too many leasing agents file the lease and then try to flip it and you get stuck without getting paid.

Thank you for getting back to me. We know absolutely nothing about this sort of thing. So I guess we will try to do the best we can. Just hope we can trust Mr Pete palmer and Blue Barron to do the right thing by us.

The leasing agents work for the operators, not for you, so be cautious about placing your trust in any of them.

Joseph,

It looks like Tralhead Exploration Paid $700 per acre in the section just north of you but only 3/16 royalty on 3/20/2019.

I dont know if you are more interested in bonus or royalty but figured i’d share! I’d see if I couldnt get them to $700 and 1/5.

Thank you for your reply. They did offer me 700 for 3/16 and gave me a counter offer of 600 for 1/5. Maybe ill try 700….Thanks again.

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