Just received a offer on 16 11n 13 w. for 400 an acre for 5 years. From stephens land service. In caddo county. Is this a good offer
ray:
First, I would not consider a 5 year lease as 3 year would be max with no extension clauses. Second, looking at the Caddo County, Ok. site, the $400 might be on the low side and you failed to state the % royalty involved, which is more important than the bonus/acre in my opinion. I would strongly consider further negotiations after conducting a detailed research.
16 11n 13w lease caddo county 3/16 for 5 yrs at 400 per mineral acre
I agree NEVER do more that 3 years and no option on the end, plus I would ask for 20%, you will get it if you ask.
Thank u
Stephens land service came back with another offer 16 11n 13w in caddo county. Offer 500 per mineral acre. 3/16. With a 3 yr lease and a 2 yr option. Is this good for this area Do u know of any other offers. He said he had already leased 3/4 of that sectio. Any help would be appreciated
How many acres do you have and does that X $500 make a significant difference in your life?
You have heard 3 times now to not take a 3 year with a 2 year option. (twice here and once on the Caddo co page) Yet, you are still entertaining such offer. If they have 3/4 of the section leased, then your acreage is not even going to influence the section being drilled or not.
The landman you are talking to may or may not be telling you the the entire truth. I find it odd (but still possible) that I cannot locate a lease for that entire township (36 sections) recorded.
If they are intending on drilling it, they can do it in less than 3 years. If they have 3/4 leased, why do they need a 2 year extension. The 2 year extension is only in the favor of the lessee (land company/operator). There is no advantage to the lessor (owner).
Just checking. Will wait and see what happens thank u for the input. Haven’t. Had a lease in a long time will wat
No. A starting offer from the OGM co. is a starting offer. If you are comfortable with the offer great, ask for a little more and you will probably get it. Negotiations 101 say counter offers and sell high. You will be glad you asked, even if you do not get it. It does not hurt to ask.
Was this good? I ask the O/G company for a"Favored Nations Clause". They would not include it in the lease. They offered 3/16 with 150.00 bonus. I said keep the bonus and give me 1/5. They agreed. This was in Pottawatomie Co. They said records indicate that I own 3.25 net mineral acres. The lease said 'containing 40.000 acres more or less'.
Ray:
I would stay in the negotiations round table for some time until I get the best offer. Don't get in a hurry!!
Sounds like a good idea. Is there anyway of finding who owns the rest of the land to see if they were offered anything
Ray:
I don't know any link on the web that reflects the mineral owners in a particular section. One way would be research records at the County Clerk's office.
Is Stephens land service also known as Stephens Production Company? Have you dealt with Lowry Land Co.? Is Stephens an operator or just a broker? There are some companies out there wanting to buy up royalties and have not done any drilling. Mineral owners have their interest tied up for 3 plus years and no production.