Leases in GV sec 16 1N-1E

[rnewbern]

Continental Resources or CLR has approached the cousins with an offer of $1200 bonus, 3 year lease with 5 year option, and 3/16 royalty. The lease is not good, and we have not even mentioned our Exhibit A. Are there other companies leasing in Garvin that might be more mineral owner friendly than CLR? I have the ame question for Stephens Co. sec 32 2N-6W.

Thanks,

Rick

[M_Barnes]

If it were me, I would not accept the 5 year option or the 3/16ths unless that was the only option. I never take an option. Too much can happen in the first three years and then you would be stuck for the extra five. I would ask about 1/5th and try to get a better lease with more protections than the standard CLR lease. They have filed quite a few leases at 1/5th. MK & P Energy is the only other agent who has posted leases in that section.

For 32-2N-6W - The only other agent in the area was David W Potts Land & Exploration Co in sec 36 mid 2019. CLR has the rest.

[rnewbern]

Good morning,

Thanks for the reply. Attending the Oklahoma NARO meetings, has taught me a lot about lease terms. Your advice is right on. I enjoy reading your responses and advice to mineral owners in the Mineral Forum. I have had a bit of contact with MK&P. I will get in touch with them as we get past the first of the year.

Thanks again,

Rick