Just got a lease extension offer in the mail from Monkota Petroleum Corp. Anybody heard of them? They say they are taking over for Iron Oil. They are Slawson Energy and Northern Oil and Gas combined, from their letter. The offer is $300 an acre staying in original terms. First thing I have seen in a while. Except for extending origianl three years to five. Which doesn’t make sense to me. Anybody else had offers. Thanks everyone for your input.
I have never heard of that company and am always a bit wary of doing business with unknowns. It can be a crapshoot.
Also, I never extend leases. Rather, I let them expire and then negotiate on price and terms. As time goes on, I learn more about what terms not to accept, so I use this as an opportunity to get rid of crap terms.
Also, I am starting to experiment with going nonconsent, particularly is the bonus money is pocket money. Oil leases are more like sales than real leases and I want to get my money for that.
JSM
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If you give the complete section, township and range, we might be able to help more. I do not extend either and especially not for five years. I always look up offering companies on Better Business Bureau and Bizapedia to see how long they have been in business. I then look for an online presence and see why their owners are and try to find out what capital they actually have.
I never extend either. The terms are not bad because the lease is from 2019 when I had experience. I am looking over the leases now to see what I want to change. I have never done a 5 yr. What I meant was I have never seen a lease extended on the original term, always a two year extension. The specific locations are all in 146n, 98w Sec - 10,13,14. thanks for replies.
I did a quick search on Monkota and see 119 leases with their name on them. Last one in 2020. Scattered all over. Some for back to 2013. Not sure how many are still active.
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