I own the mineral rights in Section (17), in Township (20) South, Range (53) West and was offered a 5 year lease by Diamond Resources for 1/8 royalty and $25/acre bonus. Has anyone else in that area received an offer from Diamond or any other company? There are a number of operators of producing wells in a 10 mile radius of the property. I contacted Mull Drilling, who seem very active in Kiowa, but they were not interested in my property.
Any feed back would be greatly appreciated.
Hi Ray,
See my post in the Kiowa Co. Comment Wall. I also got the same offer from Diamond. I also contacted Mull, but as you said they were not interested in my property either. You may want to contact Rhett Gore (again see my other post for details and other companies to contact).
I believe, but cannot confirm, that Chesapeake is the main/major player in this area. From what I have found, Nick Watkins (405 935-8304) would be the person to contact at Chesapeake for leasing inquires in this area.
You may also want to try Bayhorse Petroleum (Salt Lake City). (Google them for phone number).
Typical leases I have gotten in other areas have a term of 3yr with a 2yr option. Seems like most in Kiowa area are offering 5 & 5 which to me is too long.
I am not rushing into signing any particular lease until I'm sure I have the best offer, considering all aspects.
I leased approx. 510 acres in sections all over Townships 16, 17, and 18 South, Ranges 48 and 49 West. My deal was for $50 per net mineral acre bonus with a 1/8 royalty on a 5 year lease with right to renew with Paschal Energy/Westphal.
I thought the landman did a good job. His name is Rhett Gore and he may be reached at either (Please use the private messaging system for contact information - MRF Admin)
Hope this helps.
Hi N. Case-
I much appreciate your response. I will try to contact Chesapeak. I have contacted Bayhorse but have not received a reply as yet. I assume you contacted R. Gore about leasing your property vice asking him to negotiate for you. I also like the idea of the 3 year lease vice 5 years.
Thanks for your help.
N Case said:
Hi Ray,
See my post in the Kiowa Co. Comment Wall. I also got the same offer from Diamond. I also contacted Mull, but as you said they were not interested in my property either. You may want to contact Rhett Gore (again see my other post for details and other companies to contact).
I believe, but cannot confirm, that Chesapeake is the main/major player in this area. From what I have found, Nick Watkins (405 935-8304) would be the person to contact at Chesapeake for leasing inquires in this area.
You may also want to try Bayhorse Petroleum (Salt Lake City). (Google them for phone number).
Typical leases I have gotten in other areas have a term of 3yr with a 2yr option. Seems like most in Kiowa area are offering 5 & 5 which to me is too long.
I am not rushing into signing any particular lease until I'm sure I have the best offer, considering all aspects.
Hey Ray,
I contacted Chesapeake recently (family owns mineral rights incredibly close to yours) and they replied that they were not interested in that area. Now, whether or not the land companies that are working that area are actually working for Chesapeake I am not sure of. What I am sure of is that $25/acre for 5 years is pretty low. I have a meeting with a friend tomorrow who is very knowledgable about the field, so I will let you know what I find out.
Hi Brooksye-
Thanks for the reply. I am wrestling with changes and additions to the offered lease. Are there any producing wells on any of your leases? If there are, are there any lease provisions you think should be included to protect lessor's interest? I am in no hurry to sign and am hopeful of identifying other interested parties. I have approached several but only Mull has replied.
Ray Park said:
Hi Brooksye-
Thanks for the reply. I am wrestling with changes and additions to the offered lease. Are there any producing wells on any of your leases? If there are, are there any lease provisions you think should be included to protect lessor's interest? I am in no hurry to sign and am hopeful of identifying other interested parties. I have approached several but only Mull has replied.
Brooksye S. Gertsch said: I just completed the leasing of my land this month, so there is no production yet.
Ray Park said:
Hi Brooksye-
Thanks for the reply. I am wrestling with changes and additions to the offered lease. Are there any producing wells on any of your leases? If there are, are there any lease provisions you think should be included to protect lessor's interest? I am in no hurry to sign and am hopeful of identifying other interested parties. I have approached several but only Mull has replied.
Brooksye S. Gertsch said:
Ray Park said:
Hi Brooksye-
Thanks for the reply. I am wrestling with changes and additions to the offered lease. Are there any producing wells on any of your leases? If there are, are there any lease provisions you think should be included to protect lessor's interest? I am in no hurry to sign and am hopeful of identifying other interested parties. I have approached several but only Mull has replied.
Brooksye S. Gertsch said:I leased approx. 510 acres in sections all over Townships 16, 17, and 18 South, Ranges 48 and 49 West. My deal was for $50 per net mineral acre bonus with a 1/8 royalty on a 5 year lease with right to renew with Paschal Energy/Westphal.
Hi Joshua,
Can you provide the contact info you used to contact Chesapeake? My contact there has been unresponsive. Also, have you had any offers or contact from McDonald Land Services?
Thanks!
joshua wilson said:
Hey Ray,
I contacted Chesapeake recently (family owns mineral rights incredibly close to yours) and they replied that they were not interested in that area. Now, whether or not the land companies that are working that area are actually working for Chesapeake I am not sure of. What I am sure of is that $25/acre for 5 years is pretty low. I have a meeting with a friend tomorrow who is very knowledgable about the field, so I will let you know what I find out.
Hi N.Case,
Sure, it was (Please use the private messaging system for contact info - MRF Admin). Also, I have talked to MacDonald land services and they stated that they were just outside of our land, but not quite interested in it yet.
Hi - I recently received a call and a lease from Diamond as well - We (sisters and I) own 120 acres : Township 20 South, Range 53 West , Section 15. The terms are $50 per acre with a 1/8th royalty 5 yr w/5 yr option. Seems to be fairly common, at least from what info I have gleaned from this forum.
I see other owners have sought other agents and/or companies or had had other offers and was not sure whether to proceed with Diamond's offer or not.
I also wanted to know if folks have had any luck on modifying the lease - in particular this site has recommended not signing a lease with a clause indicating that the Lessor warrants title to the land.
Thanks,
Chris
Diamond has recently been upping their offer into the $100 & 15% range. If you have not leased yet, you may want to contact them again.
its going higher.
Hi Mike,
Mind if I ask what the best offer you have gotten so far is? From whom? You can send me a PM if you prefer...
Thanks!
Norm
im in line with everyone else. but ive quit alking to the landman companies cause if they wont tell me who they are representing then i dont trust them. they also tried to tell me i dont need a pugh clause. so I will wait :)
$375 an acre at the state mineral auction.
I assume that is to outright purchase the mineral rights, not to lease them, correct? If so then are you planning on selling your mineral rights instead of leasing? Or if leasing what is your best lease offer so far?
Mike rhymer said:
$375 an acre at the state mineral auction.
no that is to lease them for 3/16 royalty and 5 years.
Hello, first post here. Pardon my user name and a long post. I started reading all postings in Kiowa county for about 2 months since getting offered by Diamond, thought I share what I know so far. My land is by Adobe Creek reservoir (Blue lake). I'd rather not stir the pot with folks who signed up for less so I would not say what my offer was, but it was in upper end of what was mentioned in this forum (not $375). I thought Diamond landman did an outstanding job presenting the offer and educating me as I am a brand new mineral lessor. I accepted the offer with a very little negotiation. He could not disclose who their client was yet, but he did say it isn't Chesapeake. He did say it's a reputable US company that has operation in Dakotas, OK, TX, WY, and Saskatchewan with aggressive planning on drilling in first quarter 2012. They anticipate up to 200 BBL/day per well at best case. According to ESER.org, there are producing wells by Blue lake (Philpy, Bolton, Spady). I'd like to find out more details if anyone knows. Also anyone know about railroad returning rumer to Kiowa county? Thanks.