We received a letter from Jackfork Land that proposes drilling the JC Nelson 1R-9-16-21XHM well at Sections 9-T8N-R7W, 16-T8N-R7W, and 21-T8N-R7W.
What are the normal lease terms?
Courtney:
There really is no such thing as normal lease terms. All the parts of any oil and gas lease can be negotiated. Continental is pooling those sections for a multi-unit horizontal well but I don’t see you name as a respondent. Is your information properly documented against your section of ownership in the county clerk’s office?
The current offers are $2000/acre with 1/8th royalty, $1750 acre, with 3/16th royalty, 1500 acre with 1/5th royalty.
Are these low lease terms?
Depending on the amount of acreage you own, you can probably get better than that if you wait for the pooling order to be issued. Provided you are being force pooled instead of being shown for curative purposes.
We are researching for a friend who received this letter. His acreage is unknown at this time. A Second Amended Application for Pooling was attached to the letter he received from Continental through Jackfork. Can you provide some insight?