I have received a lease offer for Section 2 township 9 North Range 9w of the Indian Meridan,Caddo County.
The offer is for $600 per acre for a 3 year paid up lease with a 2 year option. However, some family members signed today (with a different company) for $1200 an acre.
I am not so sure about the 2nd company. The agent called me at 3:15 today with an offer of $1200 an acre for a 3 year lease and 2 year option. He went on to tell me that his boss had called him and said they were buying no more leases after tomorrow. This agent just happened to be in town and said he would not be available tomorrow. Therefore he wanted to meet with me today at 4:30 so I could sign the lease. I told him I did not do business that way. That I would need to read over the lease before I made a decision. He then said he would send me a copy of the lease by email in 10 minutes. It is now 7:00pm and I have not received the email.
I am wondering why the big difference in price? Anyone know what’s going on in this section and what a good price would be?
It is better to be careful. What company would be buying no more lease after tomorrow...sounds fishy to me. I would have done the same as you.
You don't want the 2 year option, no matter which company it is. You want at least 3/16 royalty, 1/4 if you can get it. $600-1100 is a range I have seen for the area. Don't let the leasing agent rush you. They frequently say things like that. Read the lease first! You need a depth clause, no post production deductions and do not warrant title. You might want to do some research on the second company. If you haven't heard of them before, then make sure you have a check in hand before you turn over the signed lease. Sometimes less desirable companies will try to flip the lease before they pay you and you are stuck in legal limbo with no payment, but you can't lease to a legit company because you have already signed.
If this is your first lease, read the MINERAL HELP at the top in the Do's and Don'ts of leasing. Or also go over to the Stephens Co website (also Grady and Garvin) and read about the last six months of comments. You will get a good feel of lease clauses, what to look for, etc.
Thanks for all the information. I know now what to look for.