I have some minerals in Stevens County, OK, and the last lease expired last year. I have been scanning this forum for activity in Stevens Count, OK, and haven’t seen any recently. But I have just received an lease offer from MK & P Energy for my 27+ net acres in Section 08-1S-5W, and Section 9-1S-5W. They sent me two contracts, one for $1200 per net acre at 3/16 royalty, and one for $1000 per net acre at 1/5.
A few years ago I tried to research all of this, and eventually would up more confused than anything, so asking for help again. Here are my questions for now:
MK & P seems to be a legit organization, but how is their reputation?
Is there any language in the contracts that I should be looking for, either good or bad?
Are the lease prices good or bad?
In this day and age, would I be better off accepting the lower cash up front and higher royalty, or the other higher cash up front and lower royalty?
Xeddog… That is low for the general area, but the sections you own in have a very technical Woodford structure so it will be tough to drill. To be honest, I’d get to a number that makes it worthwhile for you to sign the paper work, take the money and run. You’ll probably have the opportunity to lease it again.
Make sure that you do not hand over a signed lease without getting paid right then. No drafts or waiting. Make sure you do not have any post production charges. Would advise getting an attorney to look over the lease as the original draft ones are not in the mineral owner’s favor.