Lease offers

Oil and Gas Leasing Help
1

Lavaca county TX -

When following up with multiple oil companies about possible oil/gas lease, should we mention that we have gotten an offer?

2

I would. Having dealt with multiple offers at one time, it generally cut down on the BS tiny incremental increase in offers.

3

thanks for the imput

r w kennedy said:

I would. Having dealt with multiple offers at one time, it generally cut down on the BS tiny incremental increase in offers.

4

lkweis:

It is totally appropriate to mention prior offers as rw kennedy mentions as this could benefit you in the negotiation process.

5

The real decision is whom is going to own the block and, if it is apparent who is going to have the position, then you go with the one with the lease position. The leasing landscape has changed dramatically since the advent of horizontal drilling.

I never thought that I would ever live to see an open 150 acre tract in the middle of an oil field, but there certainly are these days. It is not reasonable to lease to the wrong person in Texas in a horizontal play.

Your better option is to develop a leasing syndicate and have a professional negotiator or attorney with negotiating skills put the whole deal together. That would without doubt be the best leasing strategy. Even get well commitments and special provisions that as a singular mineral owner you could not possibly negotiate.

6

Thanks for the info, have an attorney negotiating the deal.

Buddy Cotten said:

The real decision is whom is going to own the block and, if it is apparent who is going to have the position, then you go with the one with the lease position. The leasing landscape has changed dramatically since the advent of horizontal drilling.

I never thought that I would ever live to see an open 150 acre tract in the middle of an oil field, but there certainly are these days. It is not reasonable to lease to the wrong person in Texas in a horizontal play.

Your better option is to develop a leasing syndicate and have a professional negotiator or attorney with negotiating skills put the whole deal together. That would without doubt be the best leasing strategy. Even get well commitments and special provisions that as a singular mineral owner you could not possibly negotiate.

Buddy Cotten

Mineral Manager

Buddy Cotten