Just received a lease offer in sec 33-14N-12W, Blaine County

We just received a lease offer consisting of a three-year, 3/16 lease for $2000 per acre from Wake Energy. There is an old well tying up the lease, but Wake Energy is asking us to go ahead and sign this new lease, they say that they will pay the lease only if they can get the old oil company to release. Not sure what the benefit would be in signing a lease at this point. Also, is $2000 per acre the going rate in this area? I’ve never heard of this company.

Generally not a good idea to sign a lease if the old one is still HBP. Too many legal hurdles and you can get tied up in a mess. If they really want it, they will clear the title and then offer again. Or you will get force pooled which can be a good thing. What they are trying to do is called a "top lease". You need to go back to your original lease and see if you have a top lease clause in it.

Wake is probably a "stealth leaser" for another company. Or they are a speculator. Better to know who you are really dealing with. You want the best lease you can get. Generally, the first offer is low and the lease is not in your favor. There are a couple of pending pooling orders in that area. Would be better to wait and see what they pool for and then you will have an idea of the going rates. Also, you need to ask what they are offering for 1/5 and 1/4th. The royalty is so much more important than the bonus.

Friend me if you want more details on how to handle this.

Thank you very much for the information. I really appreciate any help we can get. My father always took care of this until he passed.