As the topic states. How much stock do you put into who you lease out to when signing a lease? I have two similar offers. One a big oil company (continental) and the other a smaller land man who I think is working for northern oil. Both have very similar leases and offers.
Do you go with the big oil company or the smaller company/ landman ? I have quite of pros and cons for each. But biggest question would be if I don’t go with the big oil company could I ruin plans in the area that make it harder for them to drill? I have about 120 net acres in Roosevelt county Montana. But asking overall consensus about big oil vs little oil.
It depends upon the area. It is common to have many groups lease within a section as there are multiple working interest owners, but only one operator. The operator will have to abide by all of the leases. With certain operators, I can usually get better terms from the smaller company who may be easier to work with. Always wise to get a good oil and gas attorney to review any lease as the draft is rarely in the favor of the mineral owner and has quite a bit of room for improvement.
Continental tends to drag its feet on payment of new leases.
Im still waiting, since May.
It is safer to not hand over a lease without getting paid. I send an email copy of the notarized lease with every page marked COPY DO NOT FILE in big black letters. This shows good faith on my part that the lease is signed and dated and being held for payment. My attorney or accountant third party holds the original signed lease until payment is received. Then they turn it over to the leasing agent. Instructions are clearly stated in a cover letter. I do not accept draft payment letters. That way a lease is not filed without payment.
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Do not EVER give your signed originals without payment first!
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