I have received a leasing offer from Wrangler Energy for 11-15N-5W at $4000/acre and 3/16 royalty. I believe I have 16.9 net mineral acres. This is certainly an improvement on my previous 2014 lease which was $800/acre and 1/5. I have also received numerous offers to sell my mineral interests so I know this property is hot. Does anyone know what the comparable offers are in the area? Also does anyone have good or bad experience with Wrangler?
Thanks in advance for any responses!
Bruce
After reading some of the other posts, I see that $4000/acre is nothing to get too excited about with other offers ranging from $5000 to $16,000. Maybe I should hold out for better offers. Thoughts?
Never heard of Wrangler and I think you should examine the lease carefully or have someone familiar with leases look at it to be sure there aren't any catches in it. You say you have numerous sale offers, how much are they offering to pay?
Your section was supposed to be pooled on August 8. I don't see the results yet. It is quite possible that a new company is trying to get a piece of the action. Be very careful about the terms of the lease if you decided to go with them. And move quickly. Once the order is posted, you only have 20 calendar days to give them an answer. That really means about 15 calendar days to get it mailed certified in time. Oklahoma Energy Acquisitions is the operator in the area. Personally, I would ask a bunch of questions and one of them being what are they offering for 1/5th or 1/4. I hardly ever lease for 3/16ths any more. You want a no post production deductions clause with no enhancement, or it will eat up your royalties. You need some other pretty tight clauses to protect you. There may be multiple wells over the life of the area and any mistakes now will cost you for decades. $4000 3/16ths is pretty high for this area. Make sure it isn't a sales offer with tricky wording.
Those other offers you have hear about are mostly for sales. You have a very short time frame here. The general pooling in the area has ranged from $500 3/16 to FP $3250 3/16 $3000 1/5 $1000 21% in section 7 to the west.
You should have gotten pooling paperwork if you are not leased. If not, then you need to find out why not and quickly!
Hi Martha, Thanks for the information. You probably recall that we have emailed and spoken by phone before. You schooled me well on another lease ... again so appreciated! I have not received a pooling order, probably because I am leased through 9/24 with Tributary Holdings. Unfortunately they have the option to extend the lease for 2 years ... a mistake on my part. The lady from Wrangler doesn't think they will extend. I should know in the next week. Bruce