I’ve received two lease offers and a pooling application for Sections 15 & 16 of Township 1 South, Range 4 West. One of the lease offers is from Bearcat Land, Inc. on behalf of Continental Resources who applied for the pooling. The other lease offer is from Hall-Ward Energy Fund and is for better terms. Is it better to take the best lease offer or wait for the pooling? I’m not sure how the pooling works.
0_The Pooling Process in Oklahoma.pdf (340.4 KB)
Personally, I go with whomever offers the best lease terms and clauses. And I strongly suggest that you get a good oil and gas attorney to review any lease as the draft lease is rarely in the mineral owner’s favor and needs significant edits. I have found that third party leases are often much more friendly to edits than the operator leases.
If I cannot get a good lease with reasonable terms, then I have no problem with pooling. It is essentially a short term “lease” of either six months or a year with defined reservoirs. It can have its own advantages. In several cases, the wells have not been drilled in the time frame and I have been paid multiple bonus amounts to extend the pooling.
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Thank you! The Pooling Process info is great.
The alternative I took was not to wait for an offer. I tracked down all interested leasers/buyers and asked for their best offer. You’ll get interesting offers.
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