Hello everyone, I have had an offer for a 3yr lease for
$650/ac + 1/8
Or $400/ac + 3/16
Or $300/ac + 1/5
It’s for 2 locations S/E4 N/E4 23-9N-12W W/2 15-9N-12W
I’m new to this, so I could really use any advice I can get. I will have an attorney advise me on the contract soon but I wasn’t quite sure what the best option would be. Anybody have any info on what leases are doing lately in this area?
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Very wise to get an attorney to review any draft lease. Make sure each section is on its own independent lease if you own in both. Do not link them together. Many savvy mineral owners would prefer the higher royalty option. The bonus amount may be piddly in comparison to the increased royalties from the first well and any infill wells over the years. Looks like the first well may be catty corner across 15 & 23. Looking at the ones nearby and their angles.
Lease bonus amounts are not public.
Thank you for the information. I wasn’t sure if he was buying up leases to pool and sell off to another operator or the complications that arise from that. I didn’t know if it would be wise to hold off at that price until another offer is given. If one is given. He seems to be firm on his price so it makes me think this is the case.
My lawyer was asking me the actual mineral acres and if the landman had preliminary title work to indicate the actual mineral acres. Land man said he wasn’t running preliminary title. Is this something I need to figure out? All I have are my deeds. Would I need to go to the Caddo courthouse to track that down?
You may be able to use your deeds and the Caddo County search to get a pretty good idea. Depends upon how far back the digital records go.
Start with your deeds and work backwards to see who you got them from and who that person got the acreage from, etc. Do you know how to read the description information? Sometimes you get lucky and deed tells you the acreage. Sometimes, you have to use the description and the divisions such as 1/10th of SW4 NW4. Starting from right to left, The NW4 is 160 acres, the SW4 of the NW4 would be 1/4th of the 160 acres, so 40 acres. Then 1/10th of 40 acres would be 4 acres.
Thank you so much for the link and explanation. I’m on the hunt. My lawyer said that the oil company will run title but I just want to make sure for myself as well.
The attorney is correct. However… the leasing/drilling title abstracts are often done rapidly and may miss something. The Division Order title opinion after the well is drilled is usually done with more care since they really want to pay the proper owners the proper amount.