I’ve received a lease offer in 35-8N-5W in Grady County, OK. Offer is from Royal Energy on behalf of Gulfstar Royalty Co. The offer is fair but I can’t see any activity or other leases having been filed in the section and I have never heard of these people. Has anyone else been approached or know of pending activity in that section?
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There are permits to the west of you in 19/30, 30/31, and 12/1 to the west in 8N-6W. Active leasing in 18-8N-5W. Also have active leases permits to the south in 7N-5W and 4W. Eckard has a rig in 6-7N-4W. You may get more than one offer, so don’t be too quick to jump. I am seeing royalties of 20-25%, so 3/16ths is too low. Several other agents are leasing in the area.
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Hi Martha!! One option on their offer was for 1/4 RI and $400 bonus per acre, so pretty good. Is there a risk of leasing with someone who is unknown?
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Apologies, I was just wanting to help.
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Helping with general advice based upon your expertise is very much welcomed. Direct solicitation for services is not allowed under the forum rules.
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Any info on proposed horizontal multi-unit well in Grady County, OK Carlin 0805 35-11 2WH? Our mineral interest is very small (5nma) and is in 35-8N-5W and has an estimated 33% of the completion interval (this is new and Greek to me). Received certified mail offer from Compass Energy. Best option appears to be $1,500 nma plus 20% royalty. 25% royalty not listed as an option. Much better than an offer received several months ago from another company’s land man. Thought the certified letter was interesting. No other mineral interests and only prior experience was leasing to Newfield ten years ago mol and wells) never drilled. Nice bonus then though. Any info/suggestions appreciated.
I believe Royal and Gulfstar have now withdrawn their offers to lease.
I do not see any leases filed yet in 35-8N-5W. Staghorn has a rig on location drilling the RECON 07-05-11-02 1H and 2H wells, so not sure if the Carlin well is still pending. That sec 35 is a bit stranded between two section wells to the north and to the south. How old is that offer?
The offer from Compass came yesterday via Certified mail.
Interesting. The draft lease sent by an agent will not usually be in the mineral owner’s favor. Investing in a good oil and gas attorney to help with the significant edits that are needed can gain a good bit in royalties. If an attorney is not in the budget, then the force pooling option nearer to drilling is a good alternative.
Most previous inquiries have been very generic in nature with little in the way of specifics. This was very detailed to the point of a page or more of line item cost detail for drilling the well. It wasn’t a “draft lease” though-just a solicitation but much more info than what I would think is typical. That detail and the certified mail delivery would make one think their plan to drill is serious.
I guess there is no harm in telling Compass to provide us a copy of the proposed lease.
We do have a friend who is a retired oil and gas title attorney that we can have look at the lease.
thx again.
Mike and Susan
If they sent the AFE and the “courtesy” letter by certified mail, they are more serious. Get the attorney to look at the draft. You really do not want any post production charges, no warranty to the lease, a depth clause, no option to extend, limit on shut in payments and several other clauses.
I can confirm that the August 21st lease offer I had received from Royal Energy was rescinded on September 3rd.
Would it make sense to reach out to a company like Compass to see if they are interested in leasing or is it better to wait for them to come to me? I have so many producing wells that I’m always HBP and have only had to lease once since I took over for my family. Thus, I don’t have much experience in leasing. Thoughts?
They are coming to you as we speak. You should have received a proposal.
I just received the exact same offer. It’s one of those preliminary check-the-box ones sent out on behalf of oil company, in this case Flywheel. In the absence of an option to choose 1/4 under any circumstances, I’m inclined to wait and see what happens with the OCC pooling order.