Hello
We have mineral rights in S22, 14N, 11E of Okmulgee, Co, OK.
Tarwater Energy or Cornelius had the lease for many years but there has been no production that I can find since at least 2016.
Bee Square Energy just sent us a lease. It just says Ewell well on it but there are 8 wells that we have had in that area.
There is no offer of money for the lease which we found rather unusual.
I don’t want to call them until I have a little more information about what we should ask for.
Shouldn’t we be offered something more than $1.00 for a 3 yr lease?
If anyone has any knowledge of what might be going on in that area we would really appreciate it.
Thanks in advance.
Dee
The last production on the Ewell 1 well was March 2019. “Tract 1” 1 had production through at least Oct 2020.
Ask what they are trying to lease and why there was no money offered. They may be trying to recomplete an older well. Ask what the royalty will be. Most of the recent leases have been at 3/16ths. Ask who the operator will be. The first draft of the lease will likely not be in the mineral owner favor, so negotiations will be required. Ask them lots of questions.
There may be plans to plug the old Ewell units and obtain new leases to cover new drilling operations. Does the $1 figure appear on the lease or on an offer letter? It may be the $1 pertains to “delay rentals” and not the customary lease bonus. You’re right to want more information. Would not recommend signing a new lease until further inquiries are made.
Thank you both very much!
Will read through the lease much more closely and put together all of our questions before doing anything with them.
You’ve been very helpful.
Ask them what the spacing on any new work will be. That will give you a clue as to whether the work is conventional vertical wells or horizontal wells. Read over your old lease and see what your shut-in clause says. The $1 offer needs some answers.