I received an offer from Continental Resources for $12.50/acre to lease acreage in Section 11. I inherited this acreage and am clueless about mineral rights so I don't know if that is a good deal or not. I am negotiating on behalf of my sisters and my cousins, as well, so don't want to do anything stupid! Please advise.
Need more info section 11-? n-? w
Section 11, Township, Township 2 North, Range 6 West
$12.50 or $1250.00 per acre? I'm assuming with a 3/16 RI
There are several companies leasing all around you, and that should be no less then $1,250.00/ acre. Do not get in a hurry you have something they want.
I'm embarrassed to admit how ignorant I am! She said 1250 so I assumed $12.50. You think it is more likely $1,250/acre per year for 3 years? I don't know what 3/16 RI means.
What questions should I be asking?
Thanks.
Ron McKenzie said:
There are several companies leasing all around you, and that should be no less then $1,250.00/ acre. Do not get in a hurry you have something they want.
Dorene, If this is the first offer, it is most likely to be low. I would recommend that you go back through and read the last six months of comments on this forum. They can wander a bit due to concurrent threads being discussed, but you will get a really good feel for what is going on, what lease clauses you need to be concerned about and what prices are going for. We all started with "not knowing", so read a little and then you will feel more informed. We will be glad to help you. Don't let them rush you. Leasing is not your only option, so don't panic. I think you can get a better offer.
Will do. Thanks.
M Barnes said:
Dorene, If this is the first offer, it is most likely to be low. I would recommend that you go back through and read the last six months of comments on this forum. They can wander a bit due to concurrent threads being discussed, but you will get a really good feel for what is going on, what lease clauses you need to be concerned about and what prices are going for. We all started with "not knowing", so read a little and then you will feel more informed. We will be glad to help you. Don't let them rush you. Leasing is not your only option, so don't panic. I think you can get a better offer.
Do the reading, then post back in a little while and we can walk you through it. You may not have quite as many questions after you read. Most folks wonder the same things, so we can save a little time. Write them down though as you go through and then ask.
Dorene, your offer was probably for $1250. an acre for a 3/16th but the offer was probably not that much "PER YEAR" but is that much per acre which includes a 3 year period. As we've said so many times on here "there are no stupid questions" and most of the time we've probably already ask those questions and felt stupid asking them ourselves. On here we all learn together. Some on here are very knowledgable and Praise the Lord they don't mind helping the rest of us learn. Welcome Aboard and Best Wishes for Big Wells!!!
No other companies have approached me. How do I find out who else might be interested?
Ron McKenzie said:
There are several companies leasing all around you, and that should be no less then $1,250.00/ acre. Do not get in a hurry you have something they want.
I'm definitely learning a lot. I just re-read your reply and am wondering what options other than leasing do I have?
M Barnes said:
Dorene, If this is the first offer, it is most likely to be low. I would recommend that you go back through and read the last six months of comments on this forum. They can wander a bit due to concurrent threads being discussed, but you will get a really good feel for what is going on, what lease clauses you need to be concerned about and what prices are going for. We all started with "not knowing", so read a little and then you will feel more informed. We will be glad to help you. Don't let them rush you. Leasing is not your only option, so don't panic. I think you can get a better offer.
You can lease or you can be force pooled which is essentially the OCC forcing everyone in a section to lease. Actually can work to your advantage. Type FORCE POOLING in the search block at the top and you can read up on it. Come back if you have questions.