Has anyone been approached by Mayflower Pertroleum, LLC? It looks like they have been actively leasing in the Township 6 South, Range 1 West area of Love County, OK- and I would like to see what kind of offers everyone has been receiving from them?
They have offered three different leasing options for my in-laws, being:
$1,000/nma; 1/8th RI; 3+2 yr
$750/nma; 3/16th RI; 3+2 yr
$500/nma; 1/5th RI; 3+2 yr
Any assistance with the going bonus & royalty rates would be much appreciated as I am not familiar with leasing in Love County, OK (my experience has been in the Permian Basin). Also- does anyone know what Mayflower’s intention is with this acreage? Operate of Flip?
Not familiar with any other royalty rates, but personally, I never do a two year extension. Also, if they are new to leasing, read the Mineral Help above and get help on the terms of the lease. It will not be in their favor at day one.
So we got offer from 89 Energy, Kyle was offering from Mayflower (on 89 energy behalf). 3 of 5 of lessor holders signed with Mayflower a year back and now (kyle) from Mayflower is offering on behalf of 89 a little better royalty, and In 89 letter head 2 different tracts of our land to drill “test wells” to the last 2 lessors, one being me. One question is, why would and advocate for Mayflower offer us a lease and say it’s on behalf of 89 Energy, when XTO may be the drillers.
There are usually quite a few working interest owners in a well as they are very expensive to drill. You can lease with anyone who gives you a good lease. Watch any first lease draft from a company as you will most likely need to negotiate for better clauses such as no post production costs, a depth clause, limit the shut in time frame, add a commencement of drilling clause, etc. Those will be in an Exhibit A attached to the lease.