Hello, I'm looking for any info that might be able to help us out.
My wife inherited rights to 12.5 acres in Section 2-9N-6W of Grady County. She recently received an offer from a land company on behalf of an unknown energy firm (so claims the guy anyways) to lease the rights for $600 per acre for 3 years with an option for another 2 years at $900 per acre, with 3/16 royalties. I really have no clue if that's a reasonable offer or if we should ask for more.
This was actually the second offer as the original offer was made to her aunt who has rights to 25 acres. Her aunt pressed for more, and this was what he came back with. The original offer may have been $500 for 2 years, but we don't know anything beyond that. My suspicion is that the second offer isn't really that much better than the original, but that's based on my very limited understanding of how this works.
What sort of production potential does this area have? Should we be holding out for more? I've read about being "force pooled"; how would we know if we are being force pooled? Basically, any sort of insight would be appreciated.
Thanks in advance,
Mike
Mike, in July 2014 I leased minerals in Sections 4 and 20, 9N-7W to Continental for $1000, 3/16 and 3 years. All of my checking indicated $1000 bonus seems to be top bonus being paid by Continental in 9N. My 4-9-7 is about 8 miles west of you. Was your offer from Continental or someone else?
Unfortunately, I don't know which energy company the landman was representing. The guy that my wife spoke to said he wasn't given the name (which I don't necessarily believe). The paperwork we were sent only lists the name of the land company that the guy works for. I'm at work currently, but I could provide that name this evening if it would help any.
Generally but not always, Jackfork and Turner lease for Continental and Land Services leases for Apache. If you can give me name of the land company, I will try to help by searching assignments in Grady County records. Also a quick look at your section indicates not much OGL activity so offers might not be as good as other areas.
T.S. Dudley Land Company is the one that made the offer.
Dudley is a for real land company having done a lot of leasing in Grady. Their most recent assignments have been to XTO and before that to Cimarex. The link below should take you to those assignments.
https://okcountyrecords.com/results/name=T+s+Dudley:instrument-type=Assignment+Oil+%26+Gas+Lease:site=grady/page-1
I would not hesitate to lease with them because they are legitimate and probably working for a good client. Each area has different leasing values and mostly driven by competition. If no one else is leasing in the area or you have not leased recently, then you may have to take their offer. I guess if I were you, I would ask why they do not offer at least $1000 bonus on 3/16 like Continental in 7W. Good luck and let me know how you do.