I have received a lease offer in the above area from Prime NGL, LLC. I’ve never heard of them, I have never seen a lease offer before, either. Can anyone give me some guidance? Thank you
If they will give you 3/16ths & some cash, take it & run.
Are you already getting paid on the Freedom Operating Castor 1-25H? It was drilled in 2005. Did you inherit since then? You may or may not be open to lease depending upon whether or not you were leased or were pooled in the Hunton.
If you have never leased before read the Mineral Help tab above first. It is always wise to get an oil and gas attorney to look at a draft lease as they are not in the mineral owner’s favor and need significant edits.
Thanks Todd. I’m hearing skepticism in your answer?
My choices are, all with a three year lease: 1/8, 1/6, 3/16 with descending amounts of cash. This is a very tiny holding, but I still want to do it right
No, we’re (my sister & I) are not getting paid anywhere in Lincoln County. We inherited from our Dad in 2006. I will do that reading you suggested, thanks.
There’s not much to edit in this lease offer, only the 3 choices of royalty are presented, 1/8, 1/6, 3/16 with descending amounts of cash. This is a tiny bit of royalty but I still want to do it right. It says that once they have my choice selection they will send me a O&G lease agreement. Is that what you’re referring to?
Thanks for your input
I looked up that well you mentioned. It’s in the SW. I’m in the NW. in fact, it looks like at the moment all activity is in the SW in that section.
If that is a courtesy offer, then do not sign it. It is just a cover letter. If is is not full blown two page lease that you can actually read, then you do not want to sign something that might potentially hold you to something you do not agree to. You can ask for a copy of the lease before you make a decision. As to the quarter section, they may want to expand the drilling to your area of the section since the other part was successful. Contact Freedom Operating first and see if you should be in pay. The well may be called Castor 1-24H or 1-25H. Scissortail Energy is paying on the gas.
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Not skeptical but know that in Lincoln County there isn’t much competition so not much chance of prices ticking up.
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