Hi! We got contacted about leasing land section 18, block A-24 in Gaines County and just not sure what we are looking at. Is there a way to find out what’s a good/bad deal? Thank you!
If you own a significant percentage of the section you are in a better position than if you have only a few acres. What is the name of the company who contacted you and are they leasing for a publicly traded company? [See “Oxy leasing in Gaines county” thread] Do you own the minerals and the surface/land? I have spoken with two very savvy oilmen who have leased minerals to companies for $750/acre a few miles south of Seminole. One leased quite a few acres and the other’s minerals were very close to active drilling. I know of ordinary folks in the same area who I believe leased for around $500/acre. So, hazarding a guess, unless you own several hundred acres and your minerals are very desirable, the bonus you receive will be in the above range. I don’t claim to know what’s going on in your area of Gaines county. Your minerals might command a higher price per acre. Please do additional due diligence. More important than the bonus, I think, is having a decent 25% royalty lease instead of one which is written to benefit the oil company. Please know there is no “standard” oil lease form and one word or phrase in the wrong place could cost you a considerable amount of money in the form of reduced royalties, etc. I think you should consider hiring an attorney to help you achieve a good lease: Cavaet Lessor! I believe most on this forum would advise handing over a signed lease only in exchange for an actual check or cashier’s check which is immediately payable. I would be very reluctant to accept a bank draft.Use of Bank Drafts for Bonus Payment in Oil and Gas Leasing
Thank you! It’s Stronghold Energy II Operating. The 25% royalties are there but I don’t see anything about per acre.
Did you speak with a landman working for Stronghold Energy or did a you only receive a letter in the mail? If you own surface land there are additional protections which you may want to include in the lease. All the more reason to seek out an oil and gas attorney to assist you. You might want to share the proposed lease in the leasing section of this forum for comments from others.
We received a letter and talked to a landman. We are going to find an attorney just to be safe. Thank you for all your help
Thank you for info. We own 460 acres and 100% of the minerals, but I’m not sure of the of location. The company is Blackbeard llc.
I was approached by Blackbeard as well, but they would not meet my terms, so we did not strike a deal. They were only offering $350/NMA, 1/5, 3 yrs with a two year option.
If you knew the description, you could check for permitted wells and production in your area using the RRC’s map viewer. Is the seemingly low bonus offer due to the speculative nature of possibly leasing at the margin of a potential but far from guaranteed prospect, or is it an attempt to capitalize off of inexperienced mineral owners in a first round, only to come back later with higher offers in an area that is known to almost certainly see future development? And stating the obvious, another important factor to consider is how comfortable one is with the possibility of getting ZERO bonus money vs some bonus money.
Did Blackbeard mention a target?
That’s one of several reasons I declined their offer.
No, AJ, they did not.
Michelle, This is a link to a map viewer which shows Blackbeard Operating activity in north Andrews county. Is this the same Blackbeard which contacted you and are the minerals Blackbeard approached you about near the Gaines-Andrews county line or ? Did you read the Oxy leasing in Gaines county thread linked in an earlier post?
AJ, my minerals are in Sec. 15, Blk C-45. Surely there’s not more than one Blackbeard Operating?
Michelle, I have noticed unrelated companies can use similar names. A corporationwiki “Blackbeard Operating” search returns two results. Blackbeard Energy, LLC does not seem to be connected to Blackbeard Operating. Have you read the Oxy leasing in Gaines county thread? Your minerals are near sections Oxy has leased. Did Blackbeard LLC contact you in the last few months or more than a year ago?