I own a 1.1111 net mineral acre interest in Creek County, section 35-17N-8E and received an offer to lease for $85/3 years. I have no idea if this is a reasonable offer, and if there is any activity in Creek County. Can anyone shed some light? Thanks
First of all, you need to quantify the royalty. 1/8th will have a higher bonus than 3/16ths. I prefer higher royalties myself because the bonus is a one time payment and the royalties are for the life of the lease and may be for multiple wells. The recently filed leases have been for 3/16ths.
in general, most of my first offers have been low to my final offers. I always ask for more.
That section has not had activity in the recent past, but did a while back. There are no current OCC cases pending, so not a rush to lease. There have been 17 leases in that section since late 2019. All by Gaston HL III. The most recent drilling was in the northern half of the township. Last permit was in 2018 in section 18. Wells are relatively shallow, so lease offers will be relatively low.
The first draft lease that you will be offered is likely not in your favor, so the clauses will need to be negotiated, especially for no post production charges.
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With so few acres you should focus on the royalty and the lease language in my humble opinion.
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