Received an offer from Needham for Camino $1,300 per acre 20% royalty for 3 years.
Think it’s a flip? Should I wait to see the pooling order?
If you except this offer by signing the paper without seeing any other lease info can you back out when seeing the full lease if other terms are not favorable?
Thanks for any information.
Personally I ignore those letters-not worth the stamp . Do not sign anything that you are not willing to follow through on.
There are quite a few companies leasing in section 9, Needham is probably the agent for Camino. Others are Muller Minerals, Sullivan James Et al, NWR Mineral Partners, Todco Properties, Yukon Trading Company in sec 8 leased for 25%. I always ask for what they might offer at 25%. I don’t care about the bonus, but want the highest royalty I can get. Sec 8 had a 25% at $200 earlier in the year at pooling.
Ask for a copy of the draft lease. It will most likely not be in your favor. Recommend that you get a good oil and gas attorney to review the lease if you choose that route. I have not had a lease offer yet that did not require some negotiation as to more favorable lease clauses. You especially do not want post production charges as they will eat up your royalties.
I do not see a pooling yet, but lots of leasing and drilling nearby. I prefer pooling if I cannot get the lease I want.
Thank you so much! This is so helpful.