Hello: I have a lease that expired and received a call from a different source. Price per acre was negotiated and decided on.
This went down shortly after Thanksgiving and although I have spoken with the man in charge several times since. The packet has yet to arrive.
It's in the mail..... which is starting to make me wonder.
I watch this forum daily and see no spuds, drilling, completion, etc. for a company called Apache.
This area is in Section 24, 1N, 22ECM in Beaver County OK.
Just checking bases is all. Thanks....
Steve, you have to take what they tell you with a 25# block of salt. It sounds like they are trying to see if they can develop a position before actually leasing anyone. They may want to verbally negotiate non-binding deals with 50 other people before sending any paper to anyone.
If they wanted they could have the packet in your hands in 7 days or less without using priority mail. I personally would call them and ask them if they wanted to lease the acres or not, that is if you were anxious to be done with it. Being me, I might also tell them that the royalty acceptable to me would be rising at @ 0.0025 per week until I have the agreement in hand as they have already had more than enough time.
I would also take this as a warning sign of how they do business. If they can't handle the acquisation of acres which is their bread and butter, how good of a job are they going to do with paying royalty, which is something they would rather not do? Just saying. You may need to tell them that you need a few clauses inserted to make sure that things happen when they are supposed to, judging by performance to date.
The dog ate my homework is not acceptable from my 6 year old nephew, much less from grown adults running multi-billion dollar corporations and it's in the mail is equivalent. This is not your brother in law, this is total strangers who want you to engage in business with them and any untruth is unacceptable. I would much rather hear the truth that they need to see something else or get something else done before sending the packet. Some people lie when the truth would serve as well or better. Know exactly who you are dealing with, not just their name but their methods and safeguard yourself accordingly.
Alternatively you could list your acres to lease and the terms you have negotiated with Apache. You might have left something on the table negotiating with Apache and someone else might better it if they knew that $100 per acre more bonus and 0.0025 more royalty would make it a done deal. They might even overnight you the packet. Secrecy is not in your favor.
Steve Apache has filed paper work to get a well started in 23 . They have taken 20 leases in 24 from Sept. to now.
Thanks to you both for your replies. I'm going to give it a few more days and then go one way or another.
You both have been very helpful. Thank-you.
What price per acre did u get?
$700 or $750 not sure without digging the lease back out. I was very surprised actually. Usually get about half that.
Jo Anne Gillespie said:
What price per acre did u get?