They have approached us with an attractive top lease offer in Grady County claiming to represent Vitruvian. The sample lease they sent is with them, not Vitruvian. Whats up here? Wondering if they are legit? Do they pay lease bonuses in a timely fashion?
I don't know specifically about this company, but often times a minor brokering company will lease for another larger/major oil company in an area to keep everyone else, ie, the courthouse, other competing lease agents, etc. from knowing that the major is leasing in the area. After the leases are taken and all of the area the major is interested in is leased up, the minor brokering company will then assign those leases to the major for which they originally contracted to do this work for.
Many times, the minor lease agent will give the lessor the name/contact info for the major so that they can contact them and feel good about the transaction.
Hope this helps.
Yes, this seems to be the case here. We are moving forward with the process. Thank you.
Centennial Land Company is well known and established brokerage. They are reputable and concerned with keeping their reputation.
Even so, I would not hand anyone a signed lease without a check in hand. It is just a poor practice on the part of the mineral owner. A contract to lease? Sure. A letter agreement, fine. Earnest money up front? Absolutely. Handing over control of your property to without a surety? Never.