I’ve received a lease offer here, and have two questions. I need to act on it quickly, because we were on a European river cruise and have used up all the slack time without an opportunity to do much research.
The offer is from Edmond Energy, and I have a good feeling about them from conversations today, but have no past experience with them. Any comments from folks who have dealt with them?
The lease is 3/16, 3 years, with a $100/NMA lease bonus. I’ve never leased in Pontotoc county at this low a lease bonus, but it’s been 35 years since we’ve had any activity in this section that involved us, and I’m not sure what’s fair in today’s market. Can anyone shed light on this?
Have fun on your cruise! I always ask what they are offering for 1/5th and ask what is their highest offer going to be, when is pooling, who is the operator and what are their plans. As of this moment, there are no regulatory actions filed, so I think you may have some time. Depends upon their leasing schedule. There have been no leases and no cases at least as far back as 2010, so not a hot area. You can choose to lease and see what happens or you can not lease and see what happens.
Their lease as offered may not be what you want. I always check for NO post productions charge, a limited shut in time, no warranty of title, depth clause, commencement of drilling clause, no top lease clause, no option to renew and a few more. Not speaking as an attorney but as a mineral owner who is careful about my leases.
Rudy, did you end up leasing and did you get the terms you wanted? I just received a notice of hearing for irregular and spacing unit. Cause CD No. 201902973 filed by Archibald Oil & Gas.I’m sure you received this also, but thought I would mention it just in case…