My brother and I just got called by Continental to lease 5 out of 6 acres which our grandparents bought and which we inherited: Section 14 10N 9W, 3 yrs --$1750 @3/16 or $1500 @1/5 (we will go for the latter). We're newbies and live in Alaska and CO so have no clue what's going on there.
Can anyone tell us if there is already production close by? Based on your collective experience and the offer, any ideas of probabilities for us?
With a company as established and large as Continental will their standard lease contain the clauses we should look for (no-deductions, depth clause, shut-in clause)? If not would they be likely to modify it at our asking without us retaining a lawyer to negotiate?
The call came last week; the landman is sending the paperwork now.
Update:
Would one of you experts like Bart Davis be willing to address my questions? I’m adding to my first post from the other day that the landman from Turner oil and gas called back and said they found an additional 5 acres they want to lease from us, thus making 10 acres. Meanwhile, we got a call and letter from a company called Waymor offering to buy 10 acres for $1250 per acre. Of course we’re ignoring that. But I’m calling on anyone can tell me what’s going on there these days, what they are finding (oil or gas?), likelihood of drilling and when, and any other salient information, as well as answering my questions the initial post.
Thanks!
i am new and cannot find how to post a question on leasing in caddo county.please help me. thanks
Martha here. There have been older vertical wells in the township for many years `110 of them. Cimarex drilled a horizontal well in Sec 1 to the Woodford in 2010. Gas well, still puttering along. So that is encouraging. It is catty corner to the NE of your section about two miles away.
Marathon had a permit to drill to the Woodford in Sec 13 next to you in 2011, but I don't see any completion report on it.
There is quite a bit of leasing going on in 2016 mostly in 1, 8, 9, 10, 11, 12 sections. Your particular section had two gas wells in the Morrow sands that produced until 2014.
If the plan is to drill to the Woodford, the wells will most likely be gas. If planning to drill to the Springer, then probably oil.
I would also go for 1/5th, but never assume that the offer is the highest they will go. Always ask for more. Ask who the operator will be, what horizon do they plan to drill, when will they be drilling.
I would not sell, but we never do.
Friend me and I can tell you the clauses you will need to watch out for.
You did it fine. Post away....
Thank you for this. Actually, the first “reply” above your first comment is from someone else and I don’t know why she replied to my post as a way to ask for help. (That was Joanne Sharpe, not me)
We would never sell either. The potential is so much greater leasing should they produce something. The clauses I know about so far include no-deductions and depth clauses. Please tell me how to friend you to save me steps, unless you can friend me! I can’t find an obvious link here.
If friending is through Facebook I’m not on it! Any way I can hook up with you for more answers would be wonderful. Thanks.
Martha Aarons,
Click on the blue and white icon beside M(Martha) Barnes name and then her page with her icon will pop up. Below her name is Send A Message. Click on 'Send A Message' and go from there.
Clint Liles
Thank you Clint. It appeared slightly differently but I got it done.
In addition to what Martha Barnes mentioned, should you ever want to do some research on your own on wells and production you can go to the Oklahoma Corporation Commission website Oil and Gas division. From there scroll down to Oil and Gas Data Mining. You can choose to view data on a map (GIS Data Mining) or perform a text based search. In either, click on "Switch to Advanced Filter" to search by Section, Township, Range. There you can view production and well documents. The OCC website production data availability can be spotty so if it doesn't show anything you can go to the Oklahoma Tax Commission Website and perform a search by legal description there and if there is production it should be listed.
Good luck!
Thanks,
Matt Sands
Thanks Matt. Since my original post things have progressed and we have learned we have more land than we thought, we have been approached by several companies, I have had a crash course in leasing thanks to M. Barnes, and we are waiting to receive best offers at the moment. I am so grateful for this website and the generosity of the knowledgeable contributors like you, who out of the goodness of your hearts provide support and protection to people like me.
Best,
Martha
