Just received a lease offer of $5,750 bonus; 3/16ths; 3yr; no extension for 4 NMA in Sec 35 6N 5W Grady County. THANKS IN ADVANCE for any input as to terms (exclusive of Exhibit).
As a clarification, the bonus of $5,750 is PER NMA or $23,000 in total. Is anyone in the Section (or adjacent) seeing more than this for a lease given the 3/16th royalty? Thanks again. Jerry Sanders
Bluestar has been trying to lease minerals from my mom. They were at $4,000/NMA with 1/5th royalty a few months ago. They just mailed her something trying to pass it off as a pooling order. They are offering $2,500 for 1/8, $1,850 for 3/16ths and $1,500 for a 1/5th. LOL
I previously leased to them for some minerals in Caddo and took 100+ days to get paid.
The letter also stated that Warwick would be drilling the well and even attached a Warwick AFE although I can’t find any permits for Warwick.
What frequently happens is that an operator will send out a leasing agent for them years to months before actually drilling. They will have a certain budget to spend. Then closer to the time of drilling, market prices will prevail and the operator sends out a courtesy letter to those folks who are still unleased and notifies them that the well is pending and pooling will be “soon”. Those letters often have the values that they will propose to the pooling judge. I never sign those letters, but I do keep them in my files. At this moment, Warwick does not have any cases at the OCC, but they may not be posted yet. Secs 33 and 34 are pending under other operators. When the poolings from those are listed with orders, you will have a better feel for the market rate now. 201801131 is the case number for 34.
Usually, you will not see a permit until after the pooling has been ordered.
There hasn’t been any regulatory actions filed in that section since CLR messed around back in 2014/2015 and it appears they didn’t do anything. In 2015 an order to dismiss the pooling application from 2014 was recorded.
Maybe BLuestar knows something. They have been working for EOG