Stephens County OK

Oil and Gas Leasing Help
1

I have land and mineral rights in Stephens County section 17-2s-4w (Wagon 1-17H well proposal) and

section 16-2s-4w (Tandy 1-16H well proposal)

My concern is that I know very little about the goings on in this business. Bearcat Land Inc. on behalf of Continental Resources has made an offer of $1,000 per acre and 1/8 royalty on each property. From there is a scale with a lesser amount of money but as higher % of royalty. My best guess is that I am getting low balled. I know that Echo has an interest in this area. Should I contact them and ask if they would make an offer? Should I negotiate for more from Bearcat ?

2

You may have small acreage and CRI is getting set up to pool your acreage and has proof you were contacted with an offer. That offer will appear in the pooling application. No big deal, you will retain your options and perhaps have additional options if pooling is approved. If your acre is very small, it won't make much difference what you do but if you have over 10-20 net mineral acres, you may want to get some help so you know your options. You are in a growing area and CRI is a very good operator. Make the most of your good fortune.

3



Gary L. Hutchinson said:

You may have small acreage and CRI is getting set up to pool your acreage and has proof you were contacted with an offer. That offer will appear in the pooling application. No big deal, you will retain your options and perhaps have additional options if pooling is approved. If your acre is very small, it won't make much difference what you do but if you have over 10-20 net mineral acres, you may want to get some help so you know your options. You are in a growing area and CRI is a very good operator. Make the most of your good fortune.

Gary L Hutchinson

Minerals Manager.

4



Stephen A. Barr said:

Gary, thanks so much for your valuable input. I'm in the process of educating myself and your time is appreciated.

Gary L. Hutchinson said:

You may have small acreage and CRI is getting set up to pool your acreage and has proof you were contacted with an offer. That offer will appear in the pooling application. No big deal, you will retain your options and perhaps have additional options if pooling is approved. If your acre is very small, it won't make much difference what you do but if you have over 10-20 net mineral acres, you may want to get some help so you know your options. You are in a growing area and CRI is a very good operator. Make the most of your good fortune.

Gary L Hutchinson

Minerals Manager.