# Lease offer Creek County
**URL:** https://www.mineralrightsforum.com/t/lease-offer-creek-county/34737
**Category:** Creek County, OK
**Created:** [October 6, 2018, 2:31pm UTC](https://www.mineralrightsforum.com/t/lease-offer-creek-county/34737 "2018-10-06T14:31:16Z")
**Posts on this page:** 11
**Page:** 1
### Author:  [@BRETT\_SELF](https://www.mineralrightsforum.com/u/BRETT_SELF)
#### Post date: [October 6, 2018, 2:31pm UTC](https://www.mineralrightsforum.com/t/lease-offer-creek-county/34737/1 "2018-10-06T14:31:16Z")
I have a lease offer Sec. 3-16N-9E from Circle 9 Resources through H.L. Gaston III Oil Properties. $100 per net mineral acre, 3/16ths royalty, 3 years. They do not state my acreage or the spacing, 80 acres or 160. They want to drill vertical to the Wilcox formation about 3,600 ft. They are offering participation of my interest: dry hole $223,200, completed $523,600. They also sent an itemized drilling and completion expenditure statement. What does this participation of interest mean? I do not know how Circle 9 makes any money; they have drilled a lot in Seminole County Wilcox formation with only marginal wells, 10 bbls oil, 2,000 bbls water. Are they trying to tie up the lease through production? My net mineral acres may only be 2-3 acres. Although I was paid a signing bonus for 80 acres 4 years ago. Maybe a blanket lease? Any thoughts or help would be appreciated.
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [October 6, 2018, 2:42pm UTC](https://www.mineralrightsforum.com/t/lease-offer-creek-county/34737/2 "2018-10-06T14:42:05Z")
Brett, that is a generic letter that is sent out. You can ignore the participation part unless you are super knowledgeable, have very deep pockets and a good accountant and lawyer. It is a hint that pooling is coming. It may be the only lease offer you receive before the pooling.
At that depth, it is probably an 80 acre or even a 40 or smaller acre lease. Probably starts out as 80 and then downsizes is another well is needed. Last pooling in the township for 2018 was by Archibald in 32 for $75 3/16ths for 10 ac spacing for the Dutcher and Glenn sands. I see lots of wells at 10 ac spacing in sec 3.
The first lease they offer you may have onerous clauses. It will probably be good to negotiate some of those out-especially if there are post production charges.
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### Author:  [@BRETT\_SELF](https://www.mineralrightsforum.com/u/BRETT_SELF)
#### Post date: [October 6, 2018, 3:22pm UTC](https://www.mineralrightsforum.com/t/lease-offer-creek-county/34737/3 "2018-10-06T15:22:47Z")
Thanks M Barnes, I did sign a lease in Section 10, Township 16N, Range 9E which is right next to Section 3 for $102 net acre. I have 43 net mineral acres. This was for Archibald. I was told they were going to do a horizontal in Section 10. I had a lawyer in Bristow tell me to strike the title warranty clause and the rest of the contract was fair. I’m not sure I want or need to sign in Section 2 if all I have is 2-3 acres. About what would it cost for a landman to find out what my net acres are in Sections 2 and 3? Would I be better off letting them pool me and waiting for division orders? Would the pooling order have to be legitimate and fair to everyone?
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [October 6, 2018, 11:06pm UTC](https://www.mineralrightsforum.com/t/lease-offer-creek-county/34737/4 "2018-10-06T23:06:22Z")
The landman that wants to lease will tell you how many acres you have because they have to do a title search in order to know how many you have to pay you the right amount. Free to you. He/she does the hunting. You can also get pooled. You would get paid the bonus about 30 days after the pooling. The division order comes about five months after first sales of product. Then you get paid at six months after first sales on the royalties on the well.
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### Author:  [@BRETT\_SELF](https://www.mineralrightsforum.com/u/BRETT_SELF)
#### Post date: [October 7, 2018, 2:42am UTC](https://www.mineralrightsforum.com/t/lease-offer-creek-county/34737/5 "2018-10-07T02:42:17Z")
Thank you M Barnes. What I am looking for is pre-1950 documents that say me and my brothers do and/or do not own Indian allotments. I have legal documents and can trace everything back to at least 1959 showing that I have 160 acres in Sec. 2 and 3, Township 16N, Range 9E, signed over by great uncle to my grandad. Those were not necessarily net mineral acres.
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### Author:  [@BRETT\_SELF](https://www.mineralrightsforum.com/u/BRETT_SELF)
#### Post date: [October 7, 2018, 2:49am UTC](https://www.mineralrightsforum.com/t/lease-offer-creek-county/34737/6 "2018-10-07T02:49:01Z")
I will be talking to H.L. Gaston this week to negotiate a deal. I’m worried more about tying up a deeper lease when we could horizontal a shallower lease. Thank you M Barnes.
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### Author:  [@BRETT\_SELF](https://www.mineralrightsforum.com/u/BRETT_SELF)
#### Post date: [October 7, 2018, 3:06am UTC](https://www.mineralrightsforum.com/t/lease-offer-creek-county/34737/7 "2018-10-07T03:06:18Z")
They were mineral acres but only his share of net mineral acres.
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### Author:  [@BRETT\_SELF](https://www.mineralrightsforum.com/u/BRETT_SELF)
#### Post date: [October 7, 2018, 6:27am UTC](https://www.mineralrightsforum.com/t/lease-offer-creek-county/34737/9 "2018-10-07T06:27:21Z")
Thank you very much M Barnes.
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### Author:  [@bburg](https://www.mineralrightsforum.com/u/bburg)
#### Post date: [January 16, 2019, 10:08pm UTC](https://www.mineralrightsforum.com/t/lease-offer-creek-county/34737/10 "2019-01-16T22:08:55Z")
Hello Brett,
I own 100% of 85 MA in 2-16N-9E Creek County. My family has 15 or so similar holdings around Oklahoma. I own mine third generation and have recently picked up the ball for the family in an effort to fully understand this business. I have resources in Denver that have very valuable information at times and I will keep you informed of what I find out over time. What are the odds of happening across someone in the same Section?? It seems to me that M. Barnes would be a good resource too!
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [January 16, 2019, 11:19pm UTC](https://www.mineralrightsforum.com/t/lease-offer-creek-county/34737/11 "2019-01-16T23:19:38Z")
Activity by Circle 9 Resources in Section 3, 14, 22 in late 2018, so keep an eye open. Archibald Oil & Gas in Sec 32
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### Author:  [@MRFAdmin\_SV](https://www.mineralrightsforum.com/u/MRFAdmin_SV)
#### Post date: [January 11, 2025, 6:15pm UTC](https://www.mineralrightsforum.com/t/lease-offer-creek-county/34737/12 "2025-01-11T18:15:41Z")