New Lease offer

Oklahoma Mineral Rights Garvin County, OK
1

Just received a new lease offer from Blackbird Resources, LLC for Garvin County Section 32-2N-3W. Has anyone every heard of Blackbird Resources? T

hey are offering

Option 1. __ $500.00 per net mineral acre for a three (3) year primary term, and 1/5th royalty. Option 2. __ $600.00 per net mineral acre for a three (3) year primary term, and 3/16ths royalty.

Thoughts and opinions on this? Has anyone successfully negotiated a 1 year primary term or is the normal still 3 years? I do not see much activity in this area so I am curious why they want to lease.

2

Three years is pretty normal. There are about 70 new leases in that section in the last 24 months. Mostly by Ovintiv. They have the South Hays and Riddle horizontal wells permitted just to the north in 17/20 and 16/21. Blackbird is probably leasing for another working interest owner or wants a piece as well. You can either lease or wait for pooling. If you have not leased in a while, it would be wise to get a good oil and gas attorney to review the draft lease as they are rarely in a mineral owner’s favor and need good negotiation.