I've received a lease offer for $300/acre-3yr-3/16 with a 2-year option to extend the lease at 100%. Does anyone know if this area is heating up and what a good offer might be?
I don't think that is too bad for your area. In terms of the Woodford shale you are probably in the dry gas window and with natural gas prices low, lease offers are going to reflect that. The operator seeking your lease may not be a Woodford shale horizontal operator. Is it your understanding that if they extend the lease for 2 more years they will pay the $300 an acre for the extension?
Cathy, Billy Simpson had an offer in this section. Comments are on page ten of this forum.
See the discussion "WHAT ARE CURRENT LEASE OFFERS FOR SEC 15?"
Who was the offer from?
You might ask them to strike the 2 year option from the lease.
Scott
Thank you for the input. I will need to clarify the terms of the extension. The offer letter said "2 year option to extend at 100%."
Don Underwood said:
I don't think that is too bad for your area. In terms of the Woodford shale you are probably in the dry gas window and with natural gas prices low, lease offers are going to reflect that. The operator seeking your lease may not be a Woodford shale horizontal operator. Is it your understanding that if they extend the lease for 2 more years they will pay the $300 an acre for the extension?
kathy i signed the lease and it stated if they extend they will pay 300 ac. for the extension,i have some friends that are going for the 20 percent and no bonus, i kinda like it that Marathon is a royalty owner along with being the lessor.i also wonder if you as royalty owner knew that Apache drilled a well there in 2000 and plugged in 2002 i havent talked to any other owner who knew this until Michael informed me last week.
Kathy the part i was the most concerned about in this lease was the option to use any dry hole for salt water dispersal.
disposal lol
Thank you so much, Billy! I did not know about the plugged well. Were they willing to strike the salt water disposal clause?
Billy R. Simpson said:
Kathy the part i was the most concerned about in this lease was the option to use any dry hole for salt water dispersal.
Cathy in referance to the injection well i was sort of stonewalled, land man said he would have to take this nup with his boss, end of discussion.
I didn't lease this last year. I now have an offer of $350-3yr-3/16 and am considering signing. For those of you who are more knowledgeable than me in this area, is this offer still a fair deal?
We have an offer for $350-3yr-3/16 from Blue Star leasing for Marathon in Sec 22 2N 8W. We also have MR in 2N 9W but there has been no interest yet. What section in 2N 9W is your interest?
In Section 2. This offer is from Blue Star, as well. Do you feel these offers are fair?
Mitchell Hankins said:
We have an offer for $350-3yr-3/16 from Blue Star leasing for Marathon in Sec 22 2N 8W. We also have MR in 2N 9W but there has been no interest yet. What section in 2N 9W is your interest?
Cathy, I have sent you a friend request, we can discuss this further. Thanks