We were contacted by Casillas Petroleum with an offer to lease our mineral rights in Sec 32 6N 4W for $1900 /NMA. When we received the lease document it was under an Osage Oil and Gas Properties letterhead and the W-9 form included had a Dragonfly Energy, Inc letterhead. Is it unusual to be dealing with three entities on a lease offer and is there any reason to be concerned?
Good to ask more questions. First of all, ask what they are offering for 3/16ths, 1/5th and 1/4. Usually, the first offer is low to the area and they may not mention the other higher royalties. Ask them who is the operator and why all three names. Casillas just bought a bunch of Continental properties, so this might be part of that purchase. Ask and see. Ask who the lease will actually be with since three names are involved and you are uncomfortable with the confusion. Ask who Dragonfly Energy is. It's name is filed as a "Nonclassifiable Establishment Industry" which makes me wonder what they do, so ask who they are and why they are on the W-9. I make sure the W-9 matches the lease and who writes the check for the bonus.
There are quite a few other companies leasing in that section, so you have more options.