I have received a offer to buy or lease mineral rights by the "1907 Land Company" out of Norman OK. On the following properties:
100+ Acres Section 30-08N-09W
100+ Acres Section 31-08N-09W
They are telling me that the lease check will be sent within 30 days. They are offering $500/net mineral acre (which their contract doesn't specify the actual net acres), and a 3/16th's royalty. The addendum includes; two year extension, no deductions, and a 2 consecutive year shut-in clause.
Has anyone heard of this company? Before I sign the contract I will be talking with my attorney in Anadarko, in this forum my main concern if the company is reputable and if the offer is reasonable.
Did you ever get paid for your lease? We received the same letter for Custer County. Last year we signed a lease with Pro Mineral, LLC with a promise to pay in 30-90 days. After a year of excuses they said they no longer wanted it, then sent back our signed lease. The website for 1907 Land Company described themselves as “A Oil and Gas Mineral Leasing and Holding Company.” What is a “Holding” company? I assume they buy up leases and/or minerals to sell to actual oil and gas operating companies (?). Except for Pro Mineral last year I’ve never been asked to sign a lease without immediate compensation. Any advice from anyone?
Personally, I would never agree to a 30 day time frame and check by mail. Only in person. Exchange lease for check. Never give a signed lease to anyone without a check in hand. Ask what they are paying for 1/5th and 1/4th. Those numbers are lower than I have heard in that township. No two year extension, two year cumulative shut in. Make sure it is a pure no deduction clause, not one with the “however” part added that puts the deductions right back in. You need an addendum with other clauses. For that many acres, you need to negotiate more.