I just got an offer to lease my mineral rights in Sections 27 and 34-16N-24Wbin Roger Mills, OK. Crawley Petroleum Corporation proposes a Cherokee horizontal test well, with surface location in SW1/4 of Sec 27-16N-24W, which is subject to change. They have made an offer to lease my interest of $1,000 for 1/8, $850 for 3/16, $700 for 1/5. I’m clueless on the type of well and should I wait for pooling. Thanks John
Sections 27 & 34 already have several horizontal wells (think the shape of a bendy straw) in other reservoirs. The Cherokee is a new reservoir. Look at your old lease to see the terms on it. You may not be open to lease. Or you might have been pooled last time in which case you may be open. Many of us would prefer the higher royalties and don’t really care about the bonus. I do not see any pooling OCC applications yet. Ask the agent why they think you are open. Suggest that you get a good oil and gas attorney to look at any lease as the drafts are rarely in the mineral owner’s favor and need some good edits. If you do not want to invest the money for that, then wait for pooling.
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