my family has been offered a lease on mineral rights that have been sitting around for years, basically forgotten. I’m trying to figure out how much to counter-offer for bonus and royalty. there seems to be a large range of numbers flying around. from $250/ to $30,000?!?! what do I need to find out to decide what my property might be worth and how much difference does it makes that this is never been leased property versus some of the folks that are reporting numbers based on property with leases that are about to expire?
You need to get competitive offers. Producing wells near you helps, especially if they are better than just economic. If you can’t get a good offer right now I’d wait. A good offer 2 years from now could easily make up for missing out on a lesser or poor lease offer right now. A little research and patience could add up to large gains .RWK
the property is smack in the middle of lots of production.
I'm not sure that waiting is an option. it's a small part of a unit and I gather there is force pooling in OK? I have been looking into this subject for all of two days. this being the late end of day number two. I think that I have made some progress on the lease form front, but can't even figure out who the competition is, so that I can give them the chance to compete. :)
To get the maximum amount of help in the minimum amount of time you might give a bit more info. So you tell us it’s in OK. Who is making the offer ? Chesapeake? If it isn’t them then there is one for you. You might also mention where in county X it happens to be. I’m not familliar with OK oil and gas so I can only give general advice. I can tell you though that making a counter offer isn’t the best thing to do. If they offered $500 per acre and you say $1000 and it’s worth $20,000, what do you think they will do? I think red sky leases for chesapeake. I’m sure some people can suggest some others. If it’s more than a house lot it’s probably worth a serious effort to find out what you need to know. Good luck. RWK
thank you so much for the quick replies.
the entire unit is 80 acres. I am hoping to get as many family members to go in together with future decisions, but unfortunately at least 2/5 have already signed something. it is located in custer co., OK, upper left corner. the offer was made by chesapeake through superior resources. offer was just over $400/acre with 3/16 royalty. I tend to think that with such a decent first offer, they must really want this lease. am I on the right track?
Wish I could be more help. I'd like to draw your attention to a thread titled [ Custer County Oklahoma Lease Offers ] in the general mineral rights discussion. A couple of different oil / lease companies are mentioned. They may give you competetive offers. Rwk
thanks. also, I read somewhere to check county records for typical lease examples. I tried that and although I have not found copies of the leases, I did access a list of dates and names of oil/gas leases in the county. this enabled me to compile a list of companies that I know have leased mineral rights in custer within the last year. it was a long list. now to figure out how to generate offers from these companies.
Beth, I think you can just call the oil and gas co’s and ask to speak to their landman. I think many would consider leasing you because yours is a good area and they like to participate in alot of wells, because it spreads their risk. Just as mineral owners have net acres oil co’s have net wells, which is the wells they have the majority ownership and all the little bits and pieces of other co’s wells that adds up to more whole wells. I think they will want yours. RWK
thanks for that info. I didn’t understand how the units could be leased to several different co at the same time. now it makes sense. I will try calling around this week.