I have some mineral rights that are being requested to lease and I am wondering if anyone can provide me some current activity in this area and what the current rates and terms have been. I live in Florida and have not been out to this part of the country for a few years and they have not been leased for 3 years. Any help or conversation is welcomed
Sincerely
Jim Johnson
James,
Your land is near Comanche and Caddo Counties. Your area was apparently a geologic prospect put together by Continental Resources who allowed the leases to expire with out drilling. There are a couple of good gas wells to the NE from the Springer FM. but I suspect an Oklahoma player is putting some acreage together to drill deeper into the Anadarko Basin. I see no recent permits to drill in the area so It is most likely a land play.
I would encourage you to lease at at a fair transaction price to you for a shorter term lease with no extensions. The next well in the area will be high risk so structure your royalty rate to encourage drilling. If you have a large acreage position, think about a farm out to a known operator.
Thank you for the quick response and being so close to the action my grandparents were children of homesteaders in the area and the mineral rights were given to us children before their death. The last lease terms expired in 2011 and what we had was for 3 years at $500.00 an acre and we have 54.93 acres in this area. We have currently been offered $200.00 an acre for three years with a two year extension and I am not sure that is the best deal at the current time. The dollar amount per acre is significantly less what are your thoughts. The royalty is the same at 3/16th which is also negotiable if the prospect of drilling looks strong.