I was approached by a Landman representing Pointer Oil & Gas regarding section 4-3S-1W in Carter County. $600 with a 1/8th royalty or $500 with a 3/16 royalty. Is anyone familiar with Pointer? Does the offer sound reasonable? I’m new to leasing so any advice would be appreciated. Thanks. CLS
Welcome to the forum. If this is your first time leasing, recommend that you get an oil and gas attorney to look over any draft lease and make suggested edits. Most of the drafts are totally in favor of the operator and not the mineral owner. Read the Mineral Help tab above and read the posts in Carter and in nearby counties to get a feel for the industry. The National Association of Royalty owners is also a good source.
I always ask for the 1/5th and 1/4th options as 1/8th is very low and 3/16ths is also not my preferred choice unless it is the only choice. Nearby leases are going at 1/4 in sections 7, 8 and 23, so some reference for higher options.
You do not have to lease. You can wait for force pooling which many of us like as another option. As there are no other leases filed in this section at this time, you might want to wait a bit and see if you get any other offers. Continental drilled a nice horizontal well in section 15 back in 2016, so that is encouraging. The current group leasing may or may not be the actual end operator.
You can usually look up companies on your favorite search engine to see how long they have been in business and who their executives are with what experience.
Thank you for your reply! Great tips and references to explore and consider. Thanks again!
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