We got an offer on some family land in Caddo County, OK and am trying to figure out if it is a good offer. The land is in Section 7, T10N R11W. The tract is the E/2 SE/4.
The offer:
Seem low, but I wanted to check here first.
Thanks
This area is starting to get some attention. I know Continental is actively buying in 10N-10W.
Welcome to the forum.
If it were me, I would prefer the higher royalty. The bonus is not as important to me as a higher royalty over many years offsets the bonus significantly if the well(s) are productive. I never accept the option to extend. Too much can happen in three years, let alone five.
If you have not leased in OK, it is wise to get a good oil and gas attorney to help review any draft lease as the clauses in the lease are important and can hold your family for decades. The draft lease is not in the mineral owner’s favor and needs negotiation on multiple clauses. Several leasing agents are in the area, so you might get more offers.
Just one point of reference. Earlier this year we closed a lease in sec 30 for $850 (1/5 3+2). The opening offer was $350 at 3/16. We are still getting multiple offers to buy our rights so that tells me there is a lot of interest from people who probably have more information than I do about what the operators are thinking. Your negotiating leverage will also depend to some extent on how many net acres you represent. Good luck!
This is great information. Thanks y’all. We only own 22 nma.
Looks like the operator that is leasing in this area is Coterra Energy.
That’s the same information (Coterra) that I have for our sec.