Offer to lease 5-5N-6W, Grady County

[Richard_Winblad]

Greetings all:

I have clients who’s property is currently the subject of a pooling order proceeding. Just getting started with no final order being issued. They received the following offer:

3 years, $1500 & 1/8th royalty

3 years, $1000 & 3/16th royalty

3 years, $500 & 1/5th royalty

3 years, $0 & 1/4th royalty.

Just trying to determine if there are more competitive offers.

Of course we would want our lease terms, no deduction, depth, etc.

[M_Barnes]

The pooling has already happened. Off if there are still acreage open.

Continental has already spudded the Leona Faye well in March. Take the highest royalty and don’t worry about the bonus. Just get the best lease clauses.