Section 26-13N-6W Canadian County Lease Information

I own 160 acres in the SE Quarter of the above mentioned section in Canadian County. My sister and I split the mineral rights. We signed a 3 year 3/16 lease in November, 2015 with a 2 year possible extension. At that time, the terms were not very good for us at all due to the fact that there was no activity in our area at all. Now the market conditions have changed considerably and there is a lot of ativity in our area. A week and a half ago Roan Resources began drilling a well in the NW corner of our section, and it will go south into section 35 as well. (There have been numerous hearings on this, but I assume all of us in Section 26 will be included in this well.) I just received a letter from Red Bluff Resources stating that they are the successor in interest to Gastar Exploration and they now own the lease. It states “In accordance with the terms and provisions of the Lease, Red Bluff will be exercising the option to extend.” They attached a W-9 to send back in.

My question is - Do I have any options here or rights for a higher lease payment since the market conditions have changed so drastically since 11/2015? Also, what is a fair lease payment for this area?

Thanks in advance for any and all information with this matter.

Roger, As someone previously remarked what you have is what you get. The good news is I have been watching where Roan (which I think is previously Linn but someone may correct me) has been drilling in this area. I have a 30 year old well not too far away that is still good! Do not be discouraged. These primarily gas wells with some oil can last for a VERY long time and even with say a 3/16 and the amount of acreage you have it will probably not disappoint.

Val Connell Carter

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Thank you Val for your replies, I appreciate your input! I was afraid we would be stuck with that lease option, but hopefully things will still turn out okay in the long run.

Thanks again, Roger