Section 32-8N-8W leasing activity

I have had an inquiry from an Agent for Continental to renew my lease. The offers are 400 per acre for 15% and $300 for 20%. Any one else getting these types of offers? I see Continental is working on section 33. The agent denied knowing if they are connected, they merely renewing an lease that has expired. John Mann

Remember it’s the agent’s job to get leases as cheap as possible. Don’t give away future profits for you and your family. This offer sounds way to low, we are at a disadvantage in not knowing what the oil companies plans are… And guess what – they aren’t going to tell you.

I would ask for $5,000 at 22.5 – and that may be way too high in todays market, but he can always conter if you have several acres. You can always come down – hard to go up… Maybe someone else has some realistic numbers for you. Time is on your side — don’t rush into a lease – WAIT – they come around – especially if they are calling you. They haven’t been drilling for one or two years after they get the leases from us

I see no particular rush to lease since there have been no OCC orders since 2019. I usually wait until closer to the actual drilling. This would be a good time to get with an oil & gas attorney and review your old lease and find out how it could be negotiated more into your favor. If you signed the first draft of the company lease last time, it was probably not in your best interests, only theirs. Lease offers are quite a bit lower this year based upon many factors. The last lease I see filed in 32 was in 2019 at 1/4.

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