I just received a call from BearCat Land to lease 17-3s-1w for $500.00 an acre. Does anyone know if there is a lot of activity in that area. I looked at OK County records to see if their were other leases and didn't see much. I have also received several letters to purchase this lately so wondering whats up if anything. I don't have a lot of resources to look at permits or anything like that so???? Anybody else receive lease offers. There is other activity in 3s 1w so wondering what to do. Any info?
Last November our family leased to BearCat our mineral interests in 31-3S-1W for $1002/acre with 1/5th royalty. We too have received a number of offers to purchase our interests for very low amounts. We have turned down all purchase offers.
Looks like Apache did a lot of leasing in that section in 2013, but never drilled. Could be that they are getting ready to drill, or someone else is interested. Any time there are offers to buy, someone knows something. I would try to get more. Early offers are usually low. See who they are leasing for, ask for 1/5 and 1/4 pricing. Make sure you get a really good lease. The first one you get will not be in your favor. No post production, limit shut in time, get a depth clause, do not warranty title, get a commencement of drilling clause.
Received same phone call from BearCat Land yesterday for 36-3s-1w. Same leasing offer.
A couple of weeks ago received phone calls from a different company. Not sure how to proceed.
Anybody have broker lists from that area?
$500/acre for 1/8, 3/16 1/4??? The offer can't be evaluated without knowing what royalty rate you are getting with the offer.
$500 3/16th
It was for 3/16 but they also offered 1/5 @ 125.00 an acre. I am still in neg. But will probably go with 1/5 with all the clauses of course. I just remember going with Bearcat on another lease for 500 and a week later I got an offer for 1200 for the same thing. I don’t want to wait too long because sometimes another offer doesn’t come along. .any advice.? Again it is 17 3s 2w carter for continental.
They did offer 1/5 when I asked for 125.00 @ acre. I have other areas in 3s 3w, 3s 2w and now the 3s 1w so don’t know what is going on in in the sec around 17 3s 1w to determine if the bonus is a good price or not. What is the easiest way to check the surroundings sections to see?
Sec 25, 3S, 1W. My first offer was $300 and 3/16ths. I tried to get 1/5 but they would not go for it. Probably should have waited them out. But I went with $500 and 3/16ths, a pugh clause for 100' feet below deepest well and a limitation on post "expenses". I think I got what I wanted but who knows when a lawyer looks at it. I was surprised by the offer in the first place. I have not seen much going on in the county especially with prices low. Good luck.
Thanks everyone for your input. still thinking about it. they went up to $600 an acre 3/16, 125.00 for 1/5
Make sure you get the best lease you can get with a good Exhibit A that overrides some of their "saving" clauses.
Which saving clauses are you referring to? I always try to get a depth clause, shut in, no deduct or post production, pugh and no top lease or extension. When they do the no deduct they still have the marketing segment that "if marketing enhances the product" etc. then you help pay, Its hard to get them to delete that. Is there a way around that or a clause that would void that? What other clauses do I need to use? thanks for your interest in helping
I do a NO DEDUCTIONS, period! clause. You also need a commencement of drilling clause and you need to limit the shut in time frame. I do cumulative, not consecutive for two years. Friend me and we can take this offline.
What is in the commencement of drilling clause? I will try to friend you now and see what happens...thanks
COMMENCEMENT OF WELL: Commencement of any well according to the term of this lease shall require that a drilling rig capable of
drilling such well to the projected total depth for such well be on location and drilling on or before the expiration of the primary term or
any other applicable time period hereunder and that the drilling of and other operations on such well be continued with due diligence in
a reasonable, prudent manner until completion of such well in one or more formations. Construction of a well location or road or any
other physical activity on the Leased Premises, or on any lands pooled, communitized or unitized therewith, without actual drilling
operations being conducted with a drilling rig capable of drilling such well to the projected total depth of such well shall not be deemed
commencement of a well under this lease.
Is it better to go ahead and negotiate a lease or wait until pooling?
Elizabeth,
How many acres do you own?
If you can negotiate a lease that has the terms that will serve you well (depth clause, no warranty of title, commencement of drilling, no post production costs, limits of shut in time), then do it. The first lease they start out with is not in your favor. It may take days to months to get to a reasonable situation. If you think that drilling is imminent, then force pooling will also get you most of what is favorable to you such as depth clause of sorts, short time frame, and usually gross proceeds instead of net proceeds.
I also just receive a call from Bearcat, they didn't state an offer, just an interest in leasing. Oct.22.