Lease offer for 21-7N-3W


#1

I recently received a letter, from Black Fish Energy, offering to lease my interest in this land. I’m a novice and was hoping to get some advice from the forum. Option 1. $2,000/acre, 3/16 for 3 years, option 2. $1,750/acre, 1/5 for 3 years and option 3. $500/acre, 1/4 for 3 years.

I would appreciate your input.

Thank you.


#2

EOG pooled sec 5 for $2750 3/16, $2500 1/5, $250 1/4 Feb 2018
Citizen Energy pooled sec 18 for $1500 3/16, $1125 1/5, $0 1/4 Feb 2018

That gives you a nearby range. That being said, I always ask what their highest offer will be. I have dealt with Black Fish quite a few times and my landman there has been exceptional. Might take a bit of negotiation, but he is quite good.


#3

We signed $650 3/16 sect 17. How do you find out pooling rate.


#4

You can look them up on the OCC website. It is a bit sluggish. I have a subscription I use which is faster.

Somewhere deep in here are the instructions for the OCC and how to find the cases by sec-township and range.
http://www.occeweb.com/Orawebapps/OCCOraWebAppsone.html


#5

Thank you very much for the information. I’ll keep you posted.