I received an offer to lease in Section 28-3S-3W Carter County. I am wondering what is going on. No one has ever been interested before.
Probably going to be a horizontal well by Continental or another operator.
If you have not leased recently, it would be advisable to get a good oil and gas attorney to review any draft lease. They are usually in the operator’s favor and need extensive edits to get a more fair lease for the mineral owner, especially regarding no post production charges that will diminish your royalties. If an attorney is not feasible, then you can wait for the forced pooling and select the highest royalty option.
How much was offered? I have a friend with minerals in Carter County and he also has not seen any activity recently. That sounds like good news, assuming it’s a decent offer.
Continental Resources is currently offering the following lease terms for a standard 3-year lease, with a 2-year option to renew:
$1,002 per acre with a 1/8 royalty (total bonus: $12,525) $752 per acre with a 3/16 royalty (total bonus: $9,400) $502 per acre with a 1/5 royalty (total bonus: $6,275)
I received an offer from R.D. Williams for Javelin 28-1,2. Section 28-3S-3W. What is happening in this area? 3 year term. $1200 per acre w/ 3/16 royalty or $1000 per acre w/ 1/5 royalty. This looks like a good offer.
Most of us would like the higher royalty. The devil is in the details with the lease clauses. If you have not leased in a while, it would be wise to get a good oil and gas attorney to help negotiate the lease. The draft lease is not in the mineral owner’s favor and needs significant edits. You also can wait and see if you get additional offers or can go to pooling which has its own advantages.
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