Just received an offer to lease for $100 nma 1/8 or $50 nms w/ 3/16 th royalty. This sounds pretty low to me. Does anyone know the going sign in rate? Seminole Co, OK sec 31-7N-7E N2 SW/4 lease offer
I have minerals that could produce but any money is better than no money.
I always favor the higher royalty. Seminole is a small producer area with minimal activity. I generally wait for a proposal by one of the operators that I know are prone to developing the property. I give a little more time to some of the small producers that I know; otherwise, I wait for the forced pooling.
I’ve received the same offer. I’m checking with OK friends for any activity info. The offer as presented didn’t include a copy of the lease form, it didn’t state the term or the development intent.
These are fairly standard options in Seminole County. Maybe you get a 1/5th no bonus option. I have a mix of 70 properties in this area and probably 10 operators.
Any answers to Cara’s question RE: recent activity? I noticed two dry holes in the section. Poolings in decades prior have been pretty abysmal. James, is that a good strategy in this region? No money for a fifth?
In Seminole County I generally wait for the pooling rather than leasing. The tracts we are in have multiple owners, so they have to be pooled. You have to make the call on a no bonus OGL in this area that will tie you up for at least 3 years. With that said, this is a low economic development area so you have to work with the operators.