We have mineral rights in Blaine County, Section 23, 15N, 13W. We were approached by Cimarex to lease the land for $750/acre plus 3/16 royalty for a three year lease which we signed in March of this year. We have since been approached by several unsolicited companies to purchase our land from $2000-$4,000/acre. We have also received a notice from Bearcat Land, Inc. about a hearing to drill and perhaps a "pooling." They offered us a paltry $650/acre lease with 3/16 or to pay a working interest in the land of approximately 6 million (we don't have any idea what our share would be) Is this a scare tactic by Bearcat (and Continental whom they represent)? We already have a 3year lease agreement with Cimarex. What are our options? How can we find out how valuable the land is and what a fair price is to re-lease or sell? We are brand new to anything of this kind.
If you are leased, your deal is done for the moment with regards to leasing. You cannot re-lease at this point until the end of your three years. If there is production, then you cannot re-lease until the production ceases, which may be 30 years from now. The offer from Bearcat was a typical form letter for Continental. Not surprising that the amounts are less. Do not take a working interest unless you are very informed, have a good attorney and a good accountant and can afford to lose a lot of money. Not a scare tactic, just a typical offer. Offers to purchase are also common before a well drills in this area. My opinion is that they are quite low. I would not sell. You will not be subject to pooling since you are already leased. If they do go to pooling to get the rest of the mineral owners "leased", then that does mean that a well is likely to be drilled in the near future-either 180 or 365 days.
I would suggest that you read over the last six months of the forum for Blaine and Kingfisher counties. Read the MINERAL HELP and the BLOGS listed on the tabs above. Also read the investor presentations for the last year or so for Cimarex, Devon, Newfield, Continental Resources, Felix Energy and Marathon Oil Company to get up to speed on what is going on in the STACK area. Basically, at this point, sit tight. Read my links in the discussion area below to see where you can get information for free from the OCC and other sites.
If you have more questions, feel free to friend me.
Thanks so much for the needed info! We appreciate it!