Lease offer in 3-4S-1E, Carter County

Oklahoma Mineral Rights Carter County, OK
1

Any activity in 3-4S-1E?

I was recently contacted by a landman reopening an old discussion about leasing our 10 acres here. The offer is $350/NMA, 1/5 royalty, 3 year, 2 year optional extension at 150% of original bonus. The original offer, which I didn’t act on, was at $200/NMA, so this is an improvement. The optional extension is a concession to me during our old talks, and I’m inclined to accept the option clause for that reason, though I wouldn’t if starting a new discussion now.

Anyone have information or opinions on this location or this lease offer?

Rudy

2

Personally, I am not a fan of the option extension as it ties up the rights too long. Too much can happen in three years, let alone five. The clauses in the lease are more important than the bonus. It is wise to get a good oil and gas attorney look at the lease and make more mineral-owner-friendly edits.

There are at least two different agents leasing in that section. I see several filed at 25%.