Hi. We have an offer for 2 acres in Section 8-10N-11W Caddo Co., OK.
What are leases going for in this area, activity seems to be picking up.
We have seenease bonus of $800 per acre, a 3/16th Royalty Interest, and a 3-year term with a 2-year option to renew the lease.
We will have a lawyer look over the paperwork. Are there any things to look out for in the deals for this area?
Thanks, John
Personally, I always ask what they are offering for 1/5th and 1/4 as I would rather have higher royalties. Might not get 1/4th in Caddo, but you don’t know if you don’t ask. Also, I never go for an option to extend. Definitely a good idea to get an attorney to look over any potential lease as they are rarely in a mineral owner’s favor and need significant improvements especially regarding post production charges.
Leasing is likely for horizontal wells to come. Sanguine and Staghorn have some permits in the southern part of the township. Bonus amounts are not public unless someone shares on the forum of there are poolings in the nearby sections within the last year.
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