I have agreed to lease 3 acres in Sec 17 of Stephens County, but the lease has not arrived and I was told that it must have been "lost in the mail" and it would be emailed, but that has not arrived either (after a week). Is the situation decreasing to the extent that leasing is being terminated?
Carolyn, what is the rest of the location? Section 17 Township? Range?
Carolyn, I really don't see where the exact location of your interest has a thing to do with your question.
The answer to your question is that only the company who is trying to lease you knows the answer to your question.
It is possible that it was lost, but it is also possible that they are no longer interested in leasing. If that is the case, they should have told you so. Maybe by now, you have received the lease and it is a moot point.
I wouldn't say that leasing has been terminated, but it isn't what it was when oil was trading @ $100 a barrel.
Some of the replies in light of oil trading below $50.00 are beyond interesting. They tend to be more on the ridiculous side. Why would someone STILL want 2011-2012 type terms??? Clearly, it is not cost effective to drill and produce right now at sub $50 prices. Mineral owners will be lucky if anyone contacts them at all. I don't know the exact numbers, but someone else who regularly dispenses free advice here, wrote that 5,000 landmen were being laid off. That may be true, but I don't have any way of verifying it. If that is true, landmen are the ones who confirm mineral interests and contact the mineral owners with an offer to lease. It probably isn't advanced math that if 5,000 landmen have been laid off, then your odds of being contacted by one to lease are greatly diminished. However, I would not say that leasing is terminated. A few might still be leasing, but not offering the terms of when it was at $100 +. Only a lawyer would advise anyone to hold out for those types of terms. They are book smart, but sometimes lacking in common sense.
As usual Dave Quincy is being a horse’s rear end. Dave please go away and let civilized people participate in this forum.
What does the location of her land or interest have to do with anything? You are attacking personally in violation of the User Policy. Get lost.
Michael Hutchison said:
As usual Dave Quincy is being a horse's rear end.
Dave please go away and let civilized people participate in this forum.
She wanted to know why she had not received her lease. What does that have to do with the location of her land?
I noticed that she never replied to you. That is understandable on her part. Your request for a clarification made no sense. She was right in ignoring you.
Go read the USER POLICY or get lost. No personal attacks.
The location makes a huge difference. If it is in a marginal area it is probable history but in a hot area it may still have a chance. Go to 2n/8w and tell me how many leases leases you come back with. On the other hand you might still see some leases being signed around 2n/4w. How can you evaluate a lease when all you know is it’s somewhere in Stephens County, Ok.? A valid question you had no reason to belittle.
Michael, I'm sure Dave has more knowledge on the subject than many, but...
"knowledge without grace is knowledge that puffs up"
Michael Hutchison said:
The location makes a huge difference. If it is in a marginal area it is probable history but in a hot area it may still have a chance. Go to 2n/8w and tell me how many leases leases you come back with. On the other hand you might still see some leases being signed around 2n/4w. How can you evaluate a lease when all you know is it's somewhere in Stephens County, Ok.? A valid question you had no reason to belittle.
She presented a particular set of facts and was told the lease was lost in the mail, and that it would be emailed. Maybe she has received it by now. If that is the case, the discussion would be moot. She then asks a specific question. She wonders if the reason that she hasn't received it is because all leasing has been terminated. I can evaluate her question based on those facts. I still don't see what the exact location had to do with the question. Apparently, neither did she.
Thanks Joel.
Dave Quincy said:
She presented a particular set of facts and was told the lease was lost in the mail, and that it would be emailed. Maybe she has received it by now. If that is the case, the discussion would be moot. She then asks a specific question. She wonders if the reason that she hasn't received it is because all leasing has been terminated. I can evaluate her question based on those facts. I still don't see what the exact location had to do with the question. Apparently, neither did she.
He's the King.
Michael Hutchison said:
Thanks Joel.
Now Dave Quincy is quoting Dave Quincy. It’s become a battle of egos…You win Dave!
Her question raises several possibilities. I am thinking that either the discussion is moot due to her receiving the lease as promised, or it is something that only the oil company who contacted her to begin with can answer. No one else is really privy to their doings or goings on. It is also possible that the landman who told her that he would email it to her, was among the 5,000 who were laid off. If he got laid off prior to emailing her the lease, he may have just said to himself, "No day rate or no per diem, color me outta here!" I don't know what happened. I hope that you can help her figure it all out.
In my experience with issues like yours the landman seems to be stalling..maybe trying to get a true approval of your tract. I have seen a LOT of leases agreed upon fail to appear in the last 2 months...and it is true a LOT of landman have been let go...this also can be a reason the lease is behind schedule..but IMO I doubt it. Right now, unless you are in sweet spot, leasing is just not happening...all the operators have drastically cut CAPEX and leasing budgets are basically gone... and the true sweet spots are really already leased and HBP by now...hopefully you are using a lawyer...your lawyer should be the one receiving the docs...but even if you get a lease through your lawyer...and pay your lawyer...until the operator goes to your attorneys office and signs the lease and hands over the money...the deal is not done...and many have ended up paying an attorney for a piece of paper that was never picked up...operators just said the "offer is now off the table:".....good luck and be careful...
Dear Joel,
I always liked reading Corinthians. Such amazing insight.
Knowledge puffs up but love grows.
Warmest regards,
Buddy Cotten
Joel King said:
Michael, I'm sure Dave has more knowledge on the subject than many, but...
"knowledge without grace is knowledge that puffs up"
Michael Hutchison said:The location makes a huge difference. If it is in a marginal area it is probable history but in a hot area it may still have a chance. Go to 2n/8w and tell me how many leases leases you come back with. On the other hand you might still see some leases being signed around 2n/4w. How can you evaluate a lease when all you know is it's somewhere in Stephens County, Ok.? A valid question you had no reason to belittle.