Lynn, go back to your original lease and read it. If it was with Walker and had an extension on it, then you are probably stuck with them. Extensions are generally risky in my opinion. If the area heats up with successes, then lease prices go up and you are stuck with a low old price. If you get drilled and have a success, then you are okay and are held by production (HBP). $500 may be a little low but not bad. If it is higher than you got the first time, be happy. Read your first lease and see what you got last time and if the extension listed what they would pay the second time. Sometimes they lock in at the first rate and sometimes, they don’t say.
Charles, We are negotiating a lease with Turner as we speak and so far have got them to 1000 per acre and 20% royalty on a 3 year deal with debt clause and no expenses. Still pushing them. Your offer is low. Go get em.
Charles, you do not want the 2 year extension, or a 1/8 royalty. If this is the first offer, it is low. You really don’t want 16% either. Three years is the usual term. Turner filed about 150 leases in the township in 2013. Calvin Energy was working it in 2012 and they were giving a lot of 20% leases so there are better offers out there. I see $600-800 at 3/16 on a few. If you lease, you want a depth clause to limit the formation, two year limit on shut-in (I prefer cumulative, but consecutive is okay as well), don’t warrant your title and be very clear about no post production deductions unless for enhancement. It looks like this area is beginning to heat up, so you can lease and take your chances for getting some bonus or you can wait for force pooling. Pros and cons to each.
Any new activity. 16 11n. 13w in caddo county
I’m new here and after following this site’s suggestion to search back for 6 months and search surrounding counties, and the OCC new well database I find I still need to ask several questions. Just received a lease offer from Turner Oil for 8-7n-11w for $500@3/16%+2 yr option or $600@1/8%+2 yr option or $700@3/16% for 4 years. The other two were for 3 years. Are they lowballing me or is the current rates for leasing? I’m thinking the 2 year options aren’t what I what to do and a two year consecutive time limited shut-in clause is the better way to go?
Thank you M Barnes & David. I will be sure to ask more questions and try for a better offer
That area has been quiet for a long time. Generally, first offers are low and I don’t accept them, but if I think it is unlikely that they will drill, then I might take one. The things you want in the lease are a depth clause, no post production deductions and don’t warrant the title.
In the township to the south, they were getting $600 3/16 a couple of years ago, so you could ask for that. Chesapeake had those.
If you are new, go to the MINERAL HELP at the top of the page and read the leasing tips. You might want to read the last six months to a year of comments on this county site and also the Stephens, Grady and Garvin sites since they are very active and many of your questions will be answered there. Also, read the investor presentations from Continental, Newfield, Marathon, Apache, Eagle Rock, Devon, etc. to get an idea about what is going on in OK. Get informed before you make a decision.
I am not familiar with Norwood, so you might want to look them up as well and see if they are a leasing company or an operator. Maybe some of the other landholders in the area will chime in if they have offers. My acreage is farther south.
Am new here. Have a mineral lease to sign with Norwood. Looking for help in determining what the going acre rate is for area around 8-9N-13W. Been offered 3 year, $500/acre and 3/16. Any help appreciated.
Thank you M Barnes for your insight and counsel. Very much appreciated.
Guys,
Just signed up with Turner who is leasing for Continental. 3 year lease with no extension 1/5 royalty and a 850.00 bonus.
This is what the warranty statement has looked like in the last several leases I have signed with Continental. They have been from 2/3 acre to 20 acres. I really don’t mind warranting the title if I know what we have. 95+% of the time my documentation is correct and matches theirs. If they end up paying us for something we don’t own, I’d prefer to repay them anyhow. However I’ve seen statements that want me to pay their attorneys to clear the title. I’d modify those or don’t sign.
Lessor hereby warrants and agrees to defend the title to the lands herein described, and agrees that the Lessee shall have the right at any time to redeem for Lessor by payment, any mortgages, taxes or other liens on the above described lands, in the event of default of payment by Lessor, and be subrogated to the rights of the holder thereof.
Guys, I am also negotiating with Turner for 4 acres in 8-7n-11W and I have a question. I am stuck on a warranty clause and this is what Turner said to my request to delete the warranty clause.
First I just want to thank you for working with me. I understand your decision not to lease because of the warranty clause, but I would like to just put a little perspective on this.
We would have to justify re-running your title for just 4 acres. The costs that would accompany this would not be cost effective. If you had a more acreage you would have more leverage and justify us to examine a no warranty for your lease.
If you did signed a lease with a warranty clause, and your title failed most operator would not come after you for your consideration. The attorney fees would cost more than the money they would want you to return. Let’s say $4000.00 ±. Many mineral owners that have 10 acres or less sometimes can justify a warranty clause in their lease because they know the odds of the company coming after them are low. I know this from my 6 years of working as a in-house Landman.
Does nay of his response ring true to you?
I routinely delete the warranty clause for less than ten acres-as in always. If you do not lease with him, then you can always go for the force pooling. In the end, it is the company who buys the product who will do the title checking at Division Order time, not drilling time, which is a different level of checking.
Devon completed one@ 26-11n-12w and someones leasing surrounding 8 sections
I’ve had a lease offer fromTS Dudley land company on behalf of Continental Resources. 750.00 an acre 3/16 th for 3 year term, Caddo 22-9N-10W. Has anyone dealt with them? I’m sorry if this has been mentioned before. I’m pretty new at this. Any replies are greatly appreciated.
Do you know if this is the Hoxbar and what the azimuth of the lateral is Im in the sw/4 of 26-11n-11w
Any activity 16. 11n. 13w. Caddo county. Or 36. 11n. 13 west. Caddo county
I think they will saturate Caddo county to establish cana-woodford( dry gas)…just because Grady county is paying up big
I believe the other 3 wells are cherokee or redfork sands all vertical…these new horizontals might go underneath your minerals so bottomhole legal is important or interval of production
I am a newbie and want to know if a top lease clause is more benefical to the Leassor or Leasee