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 ownerâs 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 yâall. We only own 22 nma.
Looks like the operator that is leasing in this area is Coterra Energy.
Thatâs the same information (Coterra) that I have for our sec.
We just had a lease offer for Section 6-10-11 at $650 for 1/5 royalty and $1000 for 3/16 for a 3 year lease. Does anyone know if there is activity in this section and if this is a good offer? I am a bit puzzled at the difference in the bonus for 1/5 vs. 3/16.
That township of 10N-11W has quite a bit of leasing by several groups.
It is typical for higher royalty offers to have lower bonus amounts. Most of us would prefer a higher royalty choice as royalties on a successful well(s) over many years would far outweigh the one time bonus of the lower royalty offer.
Bonus amounts are not public, so other folks on the forum can comment on their offers nearby.
Does anyone have information on which groups are leasing in 10N-11W?
Cimarex, Classic Resources, Continental Resources, Meadows O&G
Thank you! The company offering to lease our mineral acres is Silver Oak Natural Resources.
Always new ones out there. If you have never leased before or it has been a while, it is a really good idea to get a good oil and gas attorney to review the draft lease. They are rarely in the mineral ownerâs favor and need significant edits to make them more fair.
I have been going back and forth with Silver Oak for a few months. Their lease is lengthy and unnecessarily wordy. The current offer is Section 5, 10N10W, $750/ac, 3 yr.
One sentence, I do not understand:
âLessee shall retain a continuing right-of-way and easement over, upon and across all the the leased premises to the extent necessary for the Lessee and/or its gas purchaser to conduct its operations on the leased premises or lands spaced therewith, regardless if part of the leased premises revert or be released to Lessor.â
I do not own the surface rights so how can grant a right of way or easement upon and across the leased premises?
Thank you
The answer is you cannot grant what you do not control. Have them strike this and the warranty clause. On the wordy part, some would say my addendum is wordy; however, it protects my interest.
Agree.. we had a $1600/acre 3 year lease here in Sec 3 10N11W set up in 2017 that has expired and weâre investigating the best businesses (*reputable) to deal with. Itâs all over the board with terms and language.
Are you approaching other businesses or are you receiving multiple offers? We have recâd one offer for considerable less than in '17. I was expecting to receive more but so far there have been none coming.
Weâve received one lease offer and one purchase offer.. obviously we arenât interested in selling. But yes, initial lease offer was much less than ours in â17.
This topic was automatically closed after 90 days. New replies are no longer allowed.