Lease value

I was just approached by a land man to lease my rights in section 18 township 07 north in Caddo county. The offer was for $250/acre, 3/16, 3 years + 2yr option. Is this the going rate in that area?

Alan we need a range it will be ? west. 18-7n-? w

Full description:

Section 18, Township 07 North, Range 10 West, Caddo County OK

It looks like you need more, and should give no option. In the pooling for 15 they were ordered to offer $500 for 1/8th , 400 for 3/16th or no cash and 1/5th. in 14 they were ordered to offer 500 and 1/8th , 400 for 3/16 , or no cash and 1/4th. In 7n-10w I found one section they got up to 1500 for 1/8th , 1000 for 1/5 , or no cash and 1/4th, that was a little to far from you , but that is what a good well can do.

Last week I was offered the same amount/years/terms-probably by the same land man that Alan Lacer describes. I am in section 18-7N-10W seeking information on anyone else currently leasing in and around my section? I called Oklahoma corporate commission and they told me that section 18-7N-9W had two wells; Well names Wamsley and Williams. I don't know how far these two wells are from range 10W and if they are doing well? I'm not in the loop. I need help too. I lost out as the land man told me that I was overlooked back in 2006, 2007 and 2008 when Continental Oil leased my brother's mineral acres and TODCO leased my other brothers mineral acres. Those companies never called me and we all owned 1/3 each of a total of 40 mineral acres. I never could find out why they over looked me. Sodak Properties finally called me in June, 2008 and because of health problems I didn't call him until September. Something happened and I was out of the picture.



Ron McKenzie said:

It looks like you need more, and should give no option. In the pooling for 15 they were ordered to offer $500 for 1/8th , 400 for 3/16th or no cash and 1/5th. in 14 they were ordered to offer 500 and 1/8th , 400 for 3/16 , or no cash and 1/4th. In 7n-10w I found one section they got up to 1500 for 1/8th , 1000 for 1/5 , or no cash and 1/4th, that was a little to far from you , but that is what a good well can do.

Ron McKenzie, you said in 7n-10W you found one section they got up to 1500 for 1/8, etc. Do you know what section that was?

Dorthea I wrote that all wrong it was 7n-11w ,it was section 28 & 35 ,Also it was $1500 for 3/16th. Sorry about that.

Everybody in Section 18-7N-10W which I am in has probably received a letter from Hal C. Smith and Associates in the past two weeks. I called Caddo County clerk and spoke to Melissa. I asked her if she could tell me if there are any more leasing agents in and around section 18 besides Hal C. Smith. She referred me to the Oklahoma Corporation Commission. I called them and they didn't tell me anything. The lady did look up my section and told me there were no wells on it and no one has filed an intent to drill. So far that doesn't help me out. She also referred me to Al Crabtree, who charges for doing research and helping with leases. Things have certainly changed since 2009 when the last time I was in Anadarko, Caddo County records. I was helped more then than now. How does one, without paying someone, find out important information in order to make an intelligent decision before being dropped a second time around or not? I did call a lady in Section 18 adjacent to my farmland and she also received a letter from Hal C. Smith and Associates. She doesn't know anything either. She said she would go to town and see if she can find something out. What else can I do before accepting this low $250.00 per acre offer? I do think there is more to this and this is just the beginning. I know that EOG Resources, Inc. filed an amend permit to drill that was approved by the OCC on 03/01/2013. It will expire on 09/01/2013 in Section 20-9N-10W in Caddo county. Citation Oil and Gas Corp. filed a permit to drill in Section 36-6N-10W in Caddo. It was approved on 3/1/2013 and it will expire on 9/01/2013. None of these activities are in a 5 mile radius of my section. Any advice? I feel that all my time trying to dig up information is not leading me to my original question of any one else currently leasing in the area besides Smith andAssocicates. Why should out of state and area mineral owners have to pay people to find out a few simple questions. I feel that Hal C. Smith and Associates may flip and profit off all of us because we'll readily give in to them. We don't know anything else and fear we will lose out.

I try to find you something tomorrow .

I sent my # in a friend request in upper right hand corner of this page, if you would like call and I will see if I can answer some of your questions.

I spoke today with a rep of Hal Smith--the offer of $250/acre, 3 year + 2year option, 3/16's was non-negotiable. Their reasoning: no competition for leases in that area. Is that confirmed by anyone? I will be in Anadarko on Monday or Tuesday. It has been suggested to speak with the Co Clerk for info on drilling that area and perhaps on going rates. Is that the correct official.


Thanks.


Alan Lacer

Ron McKenzie said:

I sent my # in a friend request in upper right hand corner of this page, if you would like call and I will see if I can answer some of your questions.

Alan where is your interest ? The county clerk might help with, if they are leasing around you, but the cash bonus amount is not put on most lease agreements that are filed at the court house. The drilling permits are filed with the Okla. Corp. Comm. Also there is information on lease bonus on Pooling Orders which are also filed with OCC. Give me the location and I'll see what I can find. I am going to talk with Dorthea with some info on her tract today.

Hi Ron Just trying to make an informed decision on accepting their terms. The “non-negotiable” stance is not something I take seriously–unless it is a fact that there is no drilling and no plans to drill in that section. I am in section 18 township 07N range 10 west

Did not locate your #

Thanks

Alan The leases for Hal Smith look to be in the name of Calvin Energy and it looks like they are leasing for EOG who is doing the drilling. They picked up over 400 leases in 8n-11w. They have paid 1/5th in several sections. They have started filing poolings in 8n-11w and in the pooling for section 28 they were ordered to offer $700 for 1/8th ,600 for 3/16th or 0 cash and 1/4th Arky Land Management out of Norman leased in 28 & 36 . Todco Prop. ,Stuart Prop. both out of Norman are also leasing in 8n-11w . In 7n-11e Calvin gave 1/5th in sections 22,2,15. They also gave 1/5th on some in 8n-10w.

Alan and Ron, I am in Section 18-7n-10W. I went to www.tulsaworld looking for Oklahoma oil and gas drilling where I found information on well completions and intent to drill. I found under intent to drill: Caddo: EOG

Resources, Inc. Farrow No. 20-1H well; SW/4 SE/4 SW/4 SW/4 (SL) of section 20-9N-10W. I also read the

US Oil and Gas industry remains one of the busiest in the world right now-industry remains positive despite

a slow down over in China's growth and concerns in Europe. They also wrote an news article on April 13, 2013 about Obama's administration better positioned to ensure that continued expansion of natural gas and oil production happens safely and responsibly. In 2008, U.S. oil and natural gas has increased each year. In 2011, U.S. crude oil production reached its highest level in 8 years, increasing by an estimated 110,000 barrels per day over 2010 levels to 5.59 million barrels per day. The United States continues to expand domestic natural gas and oil production with new resource development opportunities made possible in recent years by hydraulic fracturing and other new technology. I want to remain positive and allow more time to find out more. The sections Ron mentioned above are close, but not that close. I would like to think they are moving closer to us and have the intent to drill in the near future. Will it be advantageous for me and others to wait? I don't know. I don't know if the landman, Mr. Hileman is reading all of this even though he is a busy man buying all the leases up at this time for a strict $250.00 bonus, he still referred me to this site when I talked to him a little over two weeks ago. No matter how much information I get, I don't know if I can really make an informed decision as I thought I would. I would like to see if Hal Smith will negotiate in the future because I feel as a mineral owner this should be a right instead of a non-negotiable stance as Mr. Hileman stated to me too.

Thanks for the information. Monday I visited the lease area, Co Clerk Caddo Co, visited with a current landman and two former. Most thought the offer was a bit low and all said should refuse the 2year option. I could not locate any active areas around section 18. Probably will counter their offer and see what happens.

Alan I tried sending my # again in a friend request if you need it .

Alan, when you visited with the landman did he mention anyone else besides Hal C. Smith and Associates contacting people in and around our section 18 to lease? Ron pointed out that Calvin gave 1/5th in sections

22,2, and 15-7N-11E. Those sections are only 2 to 3 miles W and SW of our section. Section 36-8N-11W is 2 to 3 miles N of us. Surely there are others leasing close to us like Calvin is. Section 28--8N-11W is abt. 5 miles NW of us with Arky, Todco, and Stuart leasing too in 8n-11w. I have a map in and around our section 18 where I marked all the leasing mineral acres I could find so far with Ron's help. They are all around us. It looks like our section is the last on the list. Hope you have some luck with your offer. I will wait until I can get some more information closer to our section. I thought I had a section only one mile from us, but I can't find where I got the source from. I wrote down section 1-7N-11E which is about 1 mile N of our section on Square Top Road (West side). When I find out more about that section 1 and see what they have been offered. Then I will have my answers to my original questions; any new activity and anyone else leasing in the area?

Can someone recommend a person to research deed records? I need research in Caddo and Carter counties. Would like someone with a known record of reliability.

The name 'Al Crabtree" was mentioned a while back but no contact info. don't know if anyone has dealt with him and can recommend his services. Thanks, Pat O