Just got a lease offer from Cody Gibson at Rock Creek Land & Energy. I’ve never heard of Rock Creek. Does anyone know if he’s working for some other oil company? Also, this offer seems a little low to me, but I don’t know what leases in that area are going for right now. Anyone with any incite would be greatly appreciated. See below:
$1,000 per net acre at a 3/16ths royalty
$800 per net acre at a 1/5th royalty
$100 per acre at a 1/4 royalty
Rock Creek works with Mewbourne often, not exclusively I would guess.
I suspect they are leasing for a multi-unit horizontal with 34. There are another two section sets on either side of you. Sentier on the west 28/33 and Oil Capital Operating on the east in 26/35. Most of us would want the higher royalty option as the royalty from one or more wells over many years usually far outweighs the one time bonus for a lower royalty.
It would be wise to invest in a good oil and gas attorney to help refine the draft lease which is all in the operator’s favor. It is very important for the mineral owner to protect themselves from post production costs and advocate for about 15 other clauses of protection.
No leases have been filed yet on that section, so you may get more offers from other agents that leased in the sections on either side. This is early in the timeline right now.
I recently had an offer from Rock Creek (Ok City OK). Typical low effort approach. Phone call with an “offer”. After responding that I’ll consider anything in writing, I get an email containing nothing more than 3 variations of bonus/royalty combinations - no proposed lease. After stating the obvious, where’s the lease language, I rec’d a lease (form) by email. It was terribly one-sided.
Admittedly in this particular location, I had only about 2 NMA, small potatoes in the big picture. What they don’t know is that they’ll likely run into me in the future with much larger positions, and the reputation they’ve built with me will be remembered.
The “land” role in this industry, especially the hired brokerage companies, are essentially motivated to push their perceived weight around to small mineral owners, demanding lopsided terms and conditions in leases. Moreover, doing as little work as possible in preparing and presenting actual executable documents vs. quick emails with a couple of numbers, hoping you’ll verbally say yes, then send a templated form with language that is heavily tilted their way. Be aware and get educated.
Dawn,
We’re over in 33, T17N - R16W. We just got a lease for much better bonus at any of those royalties. We also wrote our own owner-friendly addendum.
Dawn, what section, township and range is this? Is it 27-17n-20w?
I hear you on this. This is a helpful point to make.