Has there been any activity in Caddo County recently? Section 30, township 08N, range 11W. Ive been offered the usual 2 yr 3/16 $350 bonus with 2 yr addl. but also a a $0 bonus at 25%. Any assistance would be welcome.
Hi Barbara,
I am in 10N11W and 2 yrs ago we took a 3 yr 3/16 lease at $650 with a 2 yr renewal option same bonus. To me, your offer seems low.
There is some new horizontal drilling in the northern part of the section.
I would not do the 2 year extension due to the horizontal activity. I think the offer you received is low. General range in the area is more like $600 3/16 in the near past.
Thank you for your input, that is exactly what I thought. But what about the 25% with no signing bonus? Is there not enough activity to be hopeful of drilling in the near future?
I prefer the 25% with no bonus myself if there looks like there will be drilling in the near future. Given the level of leasing, I think there will be drilling within a couple of years. The strategy you have to ask yourself now is whether you want to lease and get the terms you want for all of the clauses you want or you can wait until the force pooling and take one of the options then. Most of the clauses you would want are implied in the force pooling, but not all. There are pros and cons to both.
I received a standard lease form. When I called to ask for the mineral rights warrant to be removed, the reply was no. Also I asked what type of drilling may be done vertical /horizontal, the 'sales person 'talked around it & would only tell me this is a standard lease. Should I be concerned?
Yes, you should be concerned. That is one of the most common clauses that companies will allow to be removed. Makes me wonder about some of the other clauses in the "standard" lease. If you want to friend me (hit the blue picture), I will look at the lease for you and show you what you need to watch out for. If it smells like a fish…...