We were contacted be Lowery Land Co. who is working for Continental Oil Company concerning leasing our minerals. The initial offer was $500 an acre at 1/5.Has anyone else been approached by these two entities regarding leasing their royalties? We are currently in negotiations and are trying to secure a much higher bonus offer with additional items added to the lease. Currently, there is a lot of seismic survey going on in our area.
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I forgot to mention our place is in Sec. 23 9N 9W
I do not see any leases filed in 23 in the last 24 months, but there is leasing all around that section in the township. I do see quite a few 1/5th leases with a few 22% and 25%. Continental has already filed three section multi-unit horizontal wells nearby. You can either lease with them or you can wait until pooling-both have their own advantages. It would be wise to get a good oil and gas attorney to review any draft lease as they are rarely in the mineral owner’s favor and need significant edits. Continental has filed quite a few Pooling applications in 9N-9W so once the orders come out, you can get a feel for the market rate on the pooling/leasing.
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Thank you, this is useful information