Has anyone received any lease offers on Sec 14?
In order for anyone to answer your question, you will need to provide the Township and Range.
Did not realize that was important. It’s 7N 3W. Thanks.
To help you understand that there are a lot of Section 14's in McClain county, you might take a look at:
The township plats are also useful to identify the surrounding Sections. It helps to know if there is a well in any of the adjoining Sections, and you have to know what those sections are.
C211-McClainCountyMap.pdf (344 KB)
Hello, Chris - I have received an offer to lease in S14, T7N, R3W, from Maoli Energy. I think it is a low-ball offer and I haven't responded yet. Have you receive a lease offer from anyone?
Yes, I did, Teddie, from Maoli, as well, a couple of weeks ago. I accepted $1800/AC bonus with 3/16 royalty but have not received a lease yet. May I ask what you were offered?
Correction: For the $1800/AC bonus the royalty is 1/8.
Hello Chris - They offered $1,800 bonus with 1/8 royalty; $1,600 bonus with 3/16 royalty, 1,400 bonus with 1/5 royalty and $0 bonus with 11/50th royalty. Sounds like your offer was the same?
Yes, Teddie, same offer. Did they ever send you a lease?
oops, it didn't post the rest. I almost always go for the highest or next highest royalty. I never pick the 1/8th because if they drill multiple wells along the next few decades, my kiddos will really want that higher royalty. Bonus only comes once. Royalties are set in stone for every well.
Make sure you get a good lease with no post production costs, limit the shut in, don't warrant title, get a depth clause, commencement of drilling clause, etc.
Thanks for the advice, M Barnes.
Yes, a sample lease - but I haven't responded to it yet.... LIfe gets in the way and I am trying to find out what the going rates are in the area...
Thanks, Teddie. I would appreciate any insight you may glean. I’m going to start soliciting offers from other area Landmen who are active in the area. I read in a different post that Eagle, Ace and Linn/Citizen are making offers in other areas of McClain County.
Chris - I keep thinking I am going to solicit other companies, but have done it yet. If I hit a "live one" I will let you know. Please let me know if you find any company leasing in our Section... Thanks! Teddie
That was supposed to be "I haven't yet." But will stay in touch! Teddie
Will stay in touch. Maola has yet to send me a lease.
Teddie I received the leases today from Maola and have not received any other offers. I am going with this.
Chris - Probably best thing to do. I just haven't gotten my act together to thoroughly go over their lease.... Hope it all works out for you!