Ive had this leased for years and presently with marathon, Lease expires in November and they are very much wanting to do an extension asap. I only do a max 3 year extension and they have already made the offer appealing but feel like I may be leaving some money on the table considering their urgency. Whats the current per acre pricing in the area, and whats the motivation behind the offer . thanks
They are probably concerned because Carrera Energy has begun acquiring leases in the area. I'm away from my office today and tomorrow, so I will not have access to the market values.
Normally, I'd agree with you. At least source a few more offers before just taking their first offer.
Consider that Marathon has leased your acreage since 2010 and done nothing with it as of yet.
Whats the easiest way to find prospective energy companies who are cultivating this area?
The easiest way is to use one of the subscription based software services available.
If you wanted to do this yourself without the use of a software service, you could research into the OCC filings for poolings, completions and other regulatory filings and make a list of which companies are active in your area.
However, if your purpose is to look for companies that may be interested in offering you a competitive price for your lease, you'll need to cast your net a bit wider than simply contacting potential operators as there are many non-ops out there that may be interested in participating as a working interest (WI) owner in a defined area. These outside WI owners will not be the entity making those regulatory filings. Often these outside WI owners will offer you better prices and better lease terms.
The complete process I utilize to build a prospect map for a given property involves going through numerous steps before I have a full picture of everyone in the area that may be interested in a particular tract of mineral interest. I then contact them all and see if they are interested.
Dear Sir
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Thanks