Any activity in Caddo S-07 T-08N R-11W? I've a lease offer of 500.00 net acre, 3 yr. term, 3/16ths royalty with a 125% of original bonus 2yr. option. There is a warranty clause but no depth clause, having leased it once years ago I am wondering if this is a good offer and if the depth clause should be included? I am new to this forum and any replies are greatly appreciated
If this is your first offer, it is low. You do not want the 2 year option at all. You do not want the warranty clause. You do need a depth clause, and a no deductions clause.
I would suggest you go to the Stephens, Grady and Garvin forums and read about six months of comments to get caught up to speed on the areas. Caddo is in the Cana Woodford area, not the SCOOP, but you will get a gist of what is going on. Also one of those counties has a Tips for Newbies section in the top part so you will have some good links. Also go to the top of this page to Mineral Help and read the do's and don'ts of leasing. A lot has changed in the time since you last leased with the horizontal drilling. You have plenty of time. Do not let them rush you. Get better informed and you can make a good decision.
There is some competition in here with Bearcat and Turner at least, so let them duke it out a little and raise the offers.