We just had an offer to lease our minerals in Caddo County. The minerals are located in the NE/4 of sec 21-10N-12W. The offer was $600.00 an acre, 3yr, 3/16. Is this a fair offer and has there been any new activity in this area? Thanks
We were offered $1100 and 3/16 from Black Diamond oil and gas in Caddo County. That is the highest offer we have received, not sure if others are offering higher or not.
Welcome to the forum.
Most offers open with 3/16ths in that area, but I see leases with 1/5th, so ask what they are offering at 1/5th. The bonus is lower, but the revenue at 1/5th for many years on a successful well will outweigh a one time bonus. There is quite a bit of leasing in that township so Meadows is interested in something or leasing for another operator.
If you have not leased recently, then it is a good idea to get a good oil and gas attorney to review the draft lease as they are not usually in the mineral owner’s favor and need edits. Never hand over a lease without getting paid the same day. If you do not wish to lease, then there may be a pooling opportunity later one which will be the alternative.
The Mineral Help tab above may be useful for a quick primer.
Thanks for the reply. That sounds like a good offer. There seems to be quite a range in bonus. Certainly gives me a good idea for counter offer.
Yes will definitely ask for 1/5 although we leased another small tract in same area and had no activity, lease is about up.