Hello Miss Barnes, I found& joined this forum today & I’ve seen you help so many on here. Do you know if there are any plans to drill in this area in the near future. My Grandma got a call about leasing my mineral rights & I want to maximize what we can get. Can you please help with that? I want to be good about this managing & capitalizing these situations going forward. I really don’t know much at all about this stuff. Do i contact other competitors to try to earn more? Do i wait until they drill ? How do i find the companies that are leasing minerals? Etc… Here are some vague details about the offer: Washita County S11 11N 14W $900 acre 3/16 3 yr lease. 23.85 acres.
Thank you so much for any help. I truly appreciate your time & admire your efforts.
Although this was to M_Barnes, i would appreciate any advice from anyone here.
In general, companies will contact you if they are interested. You can then look around and see if others are interested. You can look on www.okcountyrecords.com to see who is leasing near you. Pueblo Energy is the only company leasing at the moment. 3/16ths is the going royalty for the leases that have been filed. There is a horizontal well in section 14 to the south of you, so don’t know if Pueblo is leasing for themselves or someone else.
A good place to start learning is at the Mineral Help tab above. Also, a handy little book is called “Look before you Lease” by Jim Stafford. I saw it on Amazon the last time I was looking for it. The National Association of Royalty owners NARO used to have copies for sale.
You have to lease or be force pooled before they drill. The clauses in the lease are the most important thing to understand. The draft lease that they send you will not be in the mineral owner favor. Get a copy of it before you agree to anything.
Get to know the Oklahoma Corporation Commission website. They have a nice mineral owners manual there. http://www.occeweb.com/ Ask tons of questions!
Hi M_Barnes I have read several of your responses to other people and have learned a lot from your posts. My dad owns some mineral rights in Washita county and I have been calling around to companies he leased his from in the past since my dad would like to lease or sell them. Mostly what I have heard is that the natural gas business is very slow now and companies or people are buying for future speculation not so much for exploration. We have been offered anywhere from $195 to $450 an acre to buy the mineral rights. I was surprised that my dad received an offer in the mail today from Northrop Energy LLC from Dallas TX. The offer was to lease for 1/5 royalty and $500 an acre bonus consideration or 3/16 royalty and $700 an acre bonus or 1/8 royalty and $900 bonus and acre or to buy the mineral rights for $1500 an acre. I am very skeptical of this offer since it isn’t what other buyers have been suggesting is the market value of the mineral rights. Have you heard of this company? Does this seem like a scam to you? The offer from Northrop was for 40 acres of my dad’s mineral rights in S33T11NR14W. Thank you!
The questions that I would ask are: how long have you been in business, where does your financing come from, are you leasing for an operator and if so, which one, have you done the title work or are you just beginning, what is your academic training in the business of oil and gas, what is your average closing time for a lease, are you interested for vertical wells or horizontal wells, etc. You will get a feel for if this is just a company starting out or experienced folks with a new name.
There has been quite a bit of leasing in the township recently by Pueblo Energy LLC, so you might want to check with them. Their leasing may have spawned new interest in the area.
The bonus amounts on the lease is not the most critical item as that is a one time amount. The critical items are the clauses in the lease and what they mean to the mineral owner.
Thank you for your quick response! I did find the “Mineral Help” tab at the top of this page very helpful. Especially what to do and not to do when leasing mineral rights.
Thank you for the response. Thats the same information Im seeing, and I was hoping one of the folks who received a letter or was solicited to lease might have a phone number for their office or one of their landmen.
I guess my question to myself would be would I want to do business with a firm that is hard to find? I don’t know anything about them, so not being specifically negative, just thoughtful.