Offer to to do a 5 year working interest assignment

Oklahoma Mineral Rights
1

Hi, wondering if any one else has had an offer to purchase or a 5 year assignment on sec 26-11n-11w Caddo county Ok from Silver Oak Natural Resources ?

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2

What is going on with the Camino Resources well?

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3

Can’t remember of it was Silver Oak or Silver Meadow, but offer was sub par, a discrepancy in what was told to us and family member who was also dealing with them, and although both my and husband’s name are on ownership, they only wrote lease for a husband. Something didn’t feel right, so went either another offer that was more knowledgeable, much better offer, and better terms.

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4

Be very cautious on any offer like that. There is extensive leasing in Caddo right now with horizontals coming for some of the sections. You do not want to give away five years of horizontal royalties.

5

You need to be specific as to which Camino well you are asking about. Give a section, township and range and the name of the well.

6

Hi more specifically I received a 5 year assignment at $800.00 per acre with a 20 % ORRI trying to see if this is the norm for the area Caddo county Ok, sec 26-11n-11-w

7

That is not particularly common. Looks like Duncan Oil Properties gas a new horizontal well permitted just to the south in 35/2. Extensive leasing just to the east of you for another two section block in 25/36.

Do you have a current working interest lease with production from the Opitz or Kamm wells? Both are near end of production. Or is this a new lease? Get an attorney if you are thinking about doing this. You need to find out what you are paying or would be giving up.

8

Yes we currently have working interest in the Kam and Opitz since they were originally drilled as working interest, and still producing, the way the 5 year assignment reads is a 5 year assignment with &00.00 per acre and a 1/5 ORRI

9

Get an attorney and CPA to look at this before you decide to make a decision. I wouldn’t want to give up the first few years of potential horizontal payout from new wells with only 20% royalty if you already have the benefits of the WI.

10

Thank you for all your input