I inherited mineral rights in the following sections of Okfuskee County:
Sec 32, Twp 12N, Rge 9E- 1/8 interest- 10 acres +/-
Sec 7, Twp 12N, Rge 9E- 1/6 interest- W/2 NW/4
Sec 8, Twp 10N, Rge 9e- 1/8 interest- 4 1/2 acres
These are partial interests.
I have received an offer of a 3 year primary term for $300 cash bonus per nma and 3/16th royalty; plus
An option to extend $375 cash bonus per nma and 3/16th royalty.
This is from Scissortail Oil and Gas in Okmukgee.
Does anyone in the group have comment on the landman or the offer? also, from what I have read in the forum, it would seem prudent for me, as a newbie, to get assistance from, perhaps, an oil/gas attorney?? I also have mineral interests in Creek and Hughes counties. Comments, ideas, advice?y
My experience with Scissortail has been great. The landman from Scissortail I've worked with, John Findley, goes above and beyond in his efforts to contact me; he's even called to let me know a bonus check was going to be delayed, which I've *never* experienced before when leasing. And, I believe their bonus offers are in line with what's being offered in Okfuskee, although you may want to wait to hear from others, as bonuses can vary widely depending on many factors.
Thanks for your input. I have also read that some say you should not accept the optional extension…your thought on that?
Ideally, I like to keep leases to a 3-year term, using the rationale that you have more chances to take a better offer if it comes along with a 3-year lease. However, a 3-year lease with no extension is getting harder to find. Some companies will agree to leave option to extend off the lease if you ask them to, others hold firm on their request for a 2-year or 3-year option. Doesn't hurt to ask to leave it off. I've asked why there's such a need for extensions, and was told by one landman that the cost of drilling is much higher now, and the bigger companies that can afford to drill also have more properties waiting to be drilled, which can increase the amount of time it takes to get started drilling a property--therefore, they want to allow for more time in the initial lease.
At least Scissortail is offering a higher bonus for the extension. Some companies offer the same or a lower bonus, or no bonus at all for an extension.
I signed a3 leases yesterday w/ Jason W of Scizzortail in T12N R9E for $350/acre 3 years $455/acre 2 year option @ 3/16th royalty. So i bet you can get him to bump it.
JD
Thank all of you for your responses. Another question: did any of you add/delete/amend any provisions of the lease? I just read the results of the Chesapeake recent case with the family in Texas where they had specific provisions changed in the lease. Of course, this was in regard to thousands of acres…not where I fit. But were there any onerous provisions you might have changed? Thanks again for your input…
I'm conflicted. I leased the same leases 10 years ago and they didn't do anything. So maybe the extension shows interest. If you google oil & gas drilling in Oklahoma you can see maps showing County activity. There has bee a lot of activity North of T12N R9E.
Paula S McDaniel said:
Thanks for your input. I have also read that some say you should not accept the optional extension....your thought on that?