Too good to be true offer? Kingfisher Sec. 2-16N-9W

Oil and Gas Leasing Help
1

Hi:

I received a letter from Sagesse Land Co. in OKC today with an offer to purchase my interest in Sec. 2-16N-9W Kingfisher Co. (I'm not interested in that). The letter also stated Sagesse is offering to lease my interest for $3,500 per net mineral acre and 3/16 royalty, 3-year term, or $2,250 per acre with 1/5 royalty, 3-year term. No mention of who Sagesse represents.

I have never seen such a generous bonus offered, and wondered if I should be wary. I understand northern Kingfisher is on the edge of the Mississippian Lime Play, but still, that offer seems too good to be true without some catch.

Haven't contacted the landman yet, wanted to see what people here know first.

Thanks in advance for any information you can offer!

2

Parts of Kingfisher County is Hot. I would push for $2600/acre and 1/4. Don't get in a hurry.

3

Your interest is in Newfield's stack play. Sagesse would be a speculator wanting to participate in a well, not an operator.