Section 6. Block G, Gaines, County - Mineral Rights lease offer questions

My family was recently contacted by Tomahawk Petroleum 2.0 with an offer to lease our mineral rights.

$400, 20%, three year primary term, plus two year extention

Researched Tomahawk. They were formed in 2015 and have no active drilling. is this a common practice?

Offer in lease document does not offer any "up front money" only if they extend the lease. Cover letter talks about "$400 per net mineral acre bonus consideration" but this language is not in the lease document. Doesn't feel right to us . . . ?

Leases sent out to individual family members not a joint lease contract; checked with legal trained family member and they found this odd. . . ?

Any comments would be greatly appreciated!

That’s $100 p/a is better than I was offered in Block G Sec 335. It is not uncommon to not address the bonus in the body of the lease ($10.00 and other goods and value received).

I assume you are referring to Section 6 Block G in the C&M RR CO Survey. I am in Section 8 of Block G C&M RR CO Survey, and have been following the leasing activities of Tomahawk Petroleum 2.0 and Cimmaron Field Services, which have been very active in the area. Also on the periphery are Continental Land Resources, Riley Exploration, Adventure Exploration, XTO Energy and Tierra Exploration (refer to the attached map, section 6 has the green dot inside the orange circle. The orange circles represent leasing activity). So I would say you are in a very good spot to lease.

With respect to your other matters. They are offering you $400/net mineral acre as lease bonus, which is your upfront money. It won't be specifically detailed in your lease. I think at a minimum you should be expecting $550 per net mineral acre, 25% royalty and your own lease form. Perhaps others have advise for you.

300-GainesCountyleasingactivityNEcorner.pdf (446 KB)

Thank you for the information. It was helpful. Any other information will be appreciated.

Signed a lease in May. co-owned and each of us got a lease agreement. Not from Tomahawk. Had an oil lawyer look at it and he changed it up. I am new to this leasing stuff. I felt more comfortable doing this. He added some things that could prove a little more profitable. Seems like it is a common thing to change these leases up