We have been offered $2000 an acre from Turner Oil and Gas on behalf of Continental at 1/8 and $2750 an acre from Blue Chip Energy Partners in section 2 9N 8W in Grady County. Do these seem like resonable offersfor this section.
Thank you.
If that is an offer to buy, then I would consider it quite low since the leasing offers are in that ballpark. If it is to lease, then you need to ask what they are offering for 3/16ths, 1/5th and 1/4th.
It’s to lease and 2200 for 3/16 and 1750 for 1/4. Turner was 2000 for 1/8 1500 for 3/16 and 1250 for 1/4. Hope that helps
I usually gauge an offer by the pooling in the eight contiguous sections within the last year. I do not even consider 1/8th as the royalties are more important than the bonus money in most cases. You only get paid the bonus once, but the royalties may apply to more than one well.
Sec 1 May 2018 $5000 3/16ths, $4000 1/5th, $1500 1/4.
Sec 3 Oct 2017 $4000 3/16ths, $3500 1/5th $0 1/4. (out of my date range)
Sec 10 Aug 2017 $6500 3/16ths, $6000 1/5th $0 1/4. (out of my date range)
Sec 11 pending
Sec 12 Sep 2018 $5000 3/16ths, $4000 1/5th, $1500 1/4.
Sec 36 Sep 2018 $5000 3/16ths, $4000 1/5th, $1500 1/4.
The actual clauses of the lease are much more important than the bonus in my mind. The lease they will put in front on you will probably need negotiation to get more in your favor. I usually watch for no post production costs (none at all!), depth clause, no warranty, no two year option, no top lease clause, limit the shut in time and have a commencement of drilling clause-just to name a few. The Mineral Help tab above is helpful.
Thank you for the help. Turner said that Continental would not offer more than the original offer they made us, but as soon as we received the other offer from Blue Chip they wanted to see if they could beat it now.
Anyone have any news on Section 2 9N 8W in Grady County. We are having trouble getting anyone to lease our Mineral rights since our contract with Blue Chip Energy fell through.
Huston Energy Corporation was also leasing in April 2019 in that section along with Continental nearby. Continental has several OCC cases pending on section 2. You should have gotten the mailings for them. If not, then contact the attorney immediately. The pooling is pending in September. CONTINENTAL RESOURCES, INC. P.O. BOX 269091 OKLAHOMA CITY, OK 73126 Contact Name: MICHAEL D. STACK Contact Phone: 405-286-1717
We’ve called the leasing department a couple of times but only get voicemail so we left messages but no return calls yet. I’ll try the lawyer today and see what we can hopefully figure out. As always thank you M. Barnes.
M. Barnes,
Could you find any new leases around us since April. Continental finally called back today but of course turned the leasing over to Turner Oil and Gas.
15 leases since April 8, 2019. Amounts are not published.
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Just got word from Turner Oil and Gas that Continental is pulling out and not drilling the well in Section 2 9n 8w. So looks like we will lose all the bonus money we would have received because Blue Chip held ours too long. Oil and gas industry can just make you sick sometimes
M. Barnes have you heard anything about Continental not drilling now? I know pooling was scheduled for next month. Thanks for info you have
Jbrat0902 - why did the contract fall through? Was it because of a title issue?
Also - I see that Continental has continued the pooling application on 7/22, but has not completely dismissed the application.
Blue Chip Energy Partners couldn’t make the bonus payment. Title cleared easily less than 2 weeks. They filed the lease without paying and waited over 60 days and couldn’t make payment so they released it back to us finally.
CLR still has pending cases to be heard in September. A few are still pending from ones that were supposed to be heard in April. Just a waiting game at this point.
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M_Barnes finally talked to the lawyers assistant and she said pooling was still going but for some reason we weren’t listed on the order so she told us to call the broker and make sure we get added. Only issue is we talked to broker last week and he said CLR wasn’t doing anything in that area now and was pulling out so he wouldn’t even look at the paperwork for us. Any suggestions.
Brokers do not always have the same information as the attorneys for the operator. At this point, you just have to wait and see what happens. Giant machine with many moving parts.
We have received another offer to lease for 2000 at 1/8th or 1500 at 3/16th also offered 8500 an acre to sell. I do know there was a looming hearing scheduled last month but haven’t received anything in the mail about the results and do not have the case number to look it up. Any help or advice would be greatly appreciated. Thank you
Sorry that should be pooling hearing
The pooling number is 201902137. Still pending. If it were me, I would probably lease instead of sell. But the clauses in the lease would be the important factor.
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