Myself and other family members recently received offers to lease mineral rights in Roger Mills county, section 21-14N-25W, from Bridgeport Resources LLC. The offer is at $600/acre + 3/16. I can not find much info on this company. Anyone else dealing with Bridgeport? Is the offer inline with current market? Its been over 10 years since we had any lease activity, so a little out of touch with this market.
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Anevay and Mewbourne are also leasing in the section. They are leasing at 1/5th and 1/4, so ask for a higher royalty. Is you have not leased recently, good idea to get an oil and gas attorney to look at the draft lease as they are rarely in the mineral owner’s favor and need edits. You can also wait for forced pooling if it is offered. Horizontal drilling is picking up in the township.
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M_Barnes, thank you so much for the reply! Ever heard of Bridgeport Resources LLC? Just wondering if they are a known entity in this market. Any advice on how to locate a good attorney in the Roger Mills area? I am not local. Again, thank you kindly.
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Never dealt with them. They may be leasing for themselves or for a larger firm.
You can search the OK Bar association listing for a specialty in oil and gas. They do not have to live in the county, but do need to be licensed in OK. You may find someone in the Elk City or Clinton area. Might have to call a few to get one who does not have a conflict of interest.
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I am very happy for you, and I agree to always go for higher royalty. I own minerals in the adjoining section, 20-14N-25W. Does anyone know if any company is leasing in that section? Any information would be greatly appreciated!
Sec 20 does not have leases in the last 24 months, but 21 and several more sections to the east do as well.
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You are the best! Thank you so very much for all your help and expertise!
Have there been any wells completed recently in that township and is the Cherokee formation
prevalent or a different formation?
There are about 60 wells in that township. Thirteen were listed as intended Formation at Cherokee. The most recent completion date was in 2014. Nothing recent, but looks like leasing is beginning to pick up again.
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Your expertise and helpfulness are unsurpassed! Thank you very much!
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roger-mills-25-16n-25w-buy-offer
We leased about a year ago to Upland at $5000 nma @ 25%. Took some negotiating and time but glad we got it. Now we get buy offers and drilling is to commence soon we’ve been told. Unless you need the money in a hurry holdout for more and a 25% royalty. But don’t lease thru Upland, we like to never got paid.
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CityGirl54, thank you for sharing that info.
“We like to never got paid”? Are you saying you negotiated a deal with Upland for $5K per mineral acre with 1/4 royalty and never got the bonus money?
Never send an executed lease to anyone without money in hand. With all of my clients I insist on a face to face closing. When the bank calls and notifies that the wire is complete, I hand the lease over. Someone mentioned an O&G attorney. Do it!! Leases aren’t constructed in your favor. Very complex. Lastly, if you get a mineral purchase offer with a big juicy check ( bank draft) and a Mineral Deed attached, throw it in the trash. It is designed to tie your hands for 30-60 days with no guarantee you will ever get a nickle. That item really needs scrutiny by the O&G Lawyer.
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Great points.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
We did eventually but had to send certified letters and call leaving voicemail asking what the heck was taking so long. Never could find out what the hold up was.
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From experience. Never accept the first offer. The Range just east is receiving much more per acre. Mewbourne, Upland & Crowley are actively leasing in that area.
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Linda, to be clear, did you mean CROWLEY, or CRAWLEY in your comment above? Thank you.
As their attorney, how do you get around the typical 30-60 day closing period on minerals?
Don’t allow that much time to close. Their procedure is to get your signature on a LOI ( Letter of Intent)or a MPA (Mineral Purchase Agreement) basically same thing. That is the place where the closing period is determined. That’s when they do their Due Diligence, ( check title, check offset production, check for new activity, etc). Basically you are tied up for the period. You aren’t to talk about the terms to anyone or accept other offers. The LOI may even allow 60 BUSINESS DAYS,which could be as much as 75 days. Tell them to do their Due Diligence before they call you. Then give them 20 calendar days. Get that Lawyer involved! LOI’S CAN BE PRETTY NASTY FOR YOU.
Im a retired attorney and also own minerals in a a few states. Ive sold over 150 acres over the last 10 years, Ive never had a problem with a 30 day closing so the buyer can do their due dilligence and Ive yet to see a LOI/PSA that was nasty for me. Just out of curiousity, what kind of language in the LOI’s are you seeing that are nasty to the mineral owners, other than the closing time period?