My brother and I just got called by Continental to lease 5 out of 6 acres which our grandparents bought and which we inherited: Section 14 10N 9W, 3 yrs --$1750 @3/16 or $1500 @1/5 (we will go for the latter). We're newbies and live in Alaska and CO so have no clue what's going on there.
Can anyone tell us if there is already production close by? Based on your collective experience and the offer, any ideas of probabilities for us?
With a company as established and large as Continental will their standard lease contain the clauses we should look for (no-deductions, depth clause, shut-in clause)? If not would they be likely to modify it at our asking without us retaining a lawyer to negotiate?
The call came last week; the landman is sending the paperwork now.Update:
Would one of you experts like Bart Davis be willing to address my questions? I’m adding to my first post from the other day that the landman from Turner oil and gas called back and said they found an additional 5 acres they want to lease from us, thus making 10 acres. Meanwhile, we got a call and letter from a company called Waymor offering to buy 10 acres for $1250 per acre. Of course we’re ignoring that. But I’m calling on anyone can tell me what’s going on there these days, what they are finding (oil or gas?), likelihood of drilling and when, and any other salient information, as well as answering my questions the initial post.