Hi! I am totally new at this and not living in the Caddo area, I am in the dark as to what the current activity level is. Myself and my sisters hold an inherited interest to my father's Finch family farm. Total acres in the SE/4 160. (I think) Our holdings are as follows:
3.80952 acres in W/2 SE/4 and 7.61905 acres in E/2 SE/4 of Sec. 17, T10N, R9W, Caddo Co.
for a total mineral acres of 11.42857
We have not had any paying activity for many years but we all received letters the other day from Blue Ribbon Energy Group LLC with an offer to lease. They are seeking leases for client Bistro Energy LLC. They are in a big hurry, which bothers me. Can anyone advise me of what the situation looks like for that area?
Any advice you can give us would be appreciated.
Susan
Caddo is starting to heat up. There are certain clauses as far as a depth clause, no deductions clause, and a shut in clause you need to get in your lease at the very least.
We haven't even seen a lease yet. Or had any one to one conversations with Blue Ribbon. What they offered was two options. #1 $450/acre with 3/16 royalty #2 $375/acre with 1/5 royalty. Three year lease with 2yr extension clause. No other details. They want us to sign an acceptance form based on these options and then they say we will be sent the lease papers. They called our eldest sister (87) and tried to push her into immediate action, which really concerned us. Thankfully she still retains her stubborn streak. We retain mineral rights only, not surface rights. There is a capped natural gas well on the property.
Thank you Bart Davis for your reply! I think we need to do a lot of reading to understand what your referring to. We have no knowledge base at all!! I will get my reading glasses out and settle in for a rainy evening of reading!! Thanks again!
I can help you with it. Friend me if you need to and ill explain everything to you
Thanks Bart. I did send request. We got another phone call this morning directed to another of my sisters. At 76, I'm the youngest so I guess, I'll be the last one approached. It was impressed upon them that we act as a family. My sister told them we would have to have a better offer and they immediately doubled the offer and dropped the 2yr option. They requested permission to send us a lease to look over and said we were not going to get any interest from anyone else.
One of the unfortunate realities is that as time goes on our shares continue to get split until no one has enough to amount to anything.
Susy
In past few days, I have negotiated with a known Mineral Broker for Sec 20-10N-9W at $1000/ac 3yrs @ 1/5 RI with all the good lease mods. I believe you should get that or better.
Sam
Thanks for the info Sam. I have found that just quietly waiting has worked to our benefit. The price keeps going up, the longer we hold off. Our family group has voted me spokesperson so that negotiations will go smoother. They are up to $1100/acre 3yrs 1/5. We haven't begun to negotiate addendums yet. I have rec'd some advice on what to ask for that I very much appreciated. I need all the help I can get!!
Susy