Hello all,
My wife has received two certified letters from Bearcat Land Inc. on behalf of Continental Resources Inc., regarding two separate well proposals:
Tiffee 1-4H Section 4-3S-2W
Seiffert 1-14 Section 14-3S-2W both in Carter County OK.
They are offering 4 options on both proposals:
1) Pay our share of the drilling costs and participate to the full extent of our interest.
2) Lease for $1000/acre with 1/8 royalty.
3) Lease for $800/acre with 3/16 royalty.
4) Lease for $200/acre with 1/5 royalty.
My wife inherited the mineral rights from her mother but did not file any legal notice on the mineral rights in OK. when her mother passed away. In order for us to make an informed decision on the above options where can we find information on the above listed well proposals potential and who do we contact to file papers regarding putting my wife's name on the mineral rights? We live in Michigan and travelling to OK. is not an option at this time. Thanks in advance for any info that will point us in the right direction, David Kapa
Option number one could cost you as much as $11,000 a mineral acre.
With this option you will be paying for your part of the drilling and production costs.
The other three are just leases of your minerals. See an attorney about name change. Also be sure you include a clause opting out of any transportation , pipeline costs etc.
David, there is quite a bit to learn, but you are on the right track. If you are new to this, we can walk you through it. The first thing is that you do not want option #1. Do not participate unless you know what you are doing. It can get very expensive! The second thing is that you do not want option #2. Never go for 1/8th royalty.
Now the decision is not just between #3 and #4. There are actually a couple of other options which Bearcat does not particularly want you to know. You can negotiate, perhaps for more money or you can wait for force pooling. If you would like to friend me, I can walk you through your options. You do not particularly want the lease that Bearcat will offer. It needs some different clauses to protect your interests better. Hit the blue picture above and follow the directions. (Might not respond until after Christmas though).
David,
Email me at blake@rockcapital-group.com. I would like to discuss your interests with you.
Thanks