I just received a call from Native Exploration about leasing in this area. If anyone has any information to share, I would appreciate it. I’ve owned in this area for several years but have never had anyone interested. This call seems to be just a preliminary inquiry about whether or not I would be willing to lease or sell, and I have no clue where to find out what the going rates are, or how I should respond. They emailed an offer letter and a blank lease.
Thanks so much!!
Native Exploration is only one of several companies that are leasing in that area.
Sec 3 catty corner to you had an offer of $1200 3/16 or $1000 1/5. Section 6 farther to the west had $4500 3/16 and $4000 for 1/5, so you can see the wide range. The geology also changes from west to east.
First offers are usually low and the first lease they offer is probably not to your advantage and will need major revisions. So tell them that you talk to all potential companies and that there is competition in the area. What are they offering for for 1/5th and 1/4 and see what they say.
I make them send everything in writing. Phone calls can mysteriously be unreliable.
We leased our acreage in Section 34-7N-4W for $5000 an acre, 1/5 royalty
Leased in January.
Thanks so much Ms. Barnes. I did as you said, and asked them to send their offering in writing. What I received was an email stating the offering is is $0 x 1/5th, and that perhaps they can get a higher royalty of 1/4th approved. I actually contacted an attorney in OKC but unfortunately, Native Exploration is a client of his. He stated that he could probably get approval from Native to negotiate a lease. Does anyone have a particular knowledge of activity in this area? I inherited these minerals over 10 years ago and this is the first time anyone has contacted me with any interest.
Several different companies have active cases for horizontal drilling at the OCC in this township. Most of them are on the west side right now. Maoli and L3 Energy were also leasing in 11 in 2017.