Mcclain County OK OG Leasing

Ok so back in December I received an offer to lease$350 per net, 3/16 3yr with 2yr option extension in Section 29 Township 8N range3W I read on here to make a counter which I asked what they were paying for 1/5 and 1/4. They said they were not authorized at that time to offer anything else.

Now they have come back and offered “now offering $500, 3/16, 3+2 or $150, 1/5, 3+2”.

I am new to this trying to help my mom so does anyone have any advise? Or know about any activity in this area? Thanks for any advice you have.

Personally, I do not ever agree to the extensions as that ties up my acreage for too long. I would go for the 1/5th and only three years.
Reef Petroleum and MK& P Energy are leasing in the area. EOG looks like the main operator who is close by. Probably going for deeper horizontal drilling.

I also rarely sign the draft lease as presented as it is usually not in the mineral owner’s favor and needs some negotiation to improve it. Suggest that you read the Mineral Help tab above and get more familiar with the terms used in the industry. You really do not want any post production charges and several other clauses will probably need to be changed.

Thank you so much for your help

If this is your first time to lease, it would be advisable to contact an oil and gas attorney for OK and get their help. It is very important to get the wording correct on the lease and the addendum and stay up to date with current law. A small fee to get a good lease upfront can save your family many dollars down the road in not losing out on royalties.

1 Like

This topic was automatically closed after 90 days. New replies are no longer allowed.