What should be in a letter offering family mineral rights (Gas, Oil) for lease. Our leases run out in a bit over a year and, we would love to send out news of this event to Land Men and Exploration companies that might be interested in leasing our rights for the following two or three years.
Do you know of a nice template on the Internet which could be followed. I am aware of a number of items that should be in such a letter. I would like a nice, crisp, one page offer to send out to ten or twenty addresses.
Suggestions?
Thanks.
Carroll Rasch
Carroll
You don't need to do this. Believe me, the landmen are very well aware of what's coming up for lease. If they are interested in your property they will be contacting you. If you act to anxious or try to push the deal, you won't get the best deal. I've leased my mineral rights many times. You didn't say where in Dunn County your mineral rights were located. I just "top leased" my mineral rights in Jan. for a lease that was set to expire this Sept. They were top leased back to the same oil county as they planned to drill just didn't know if they would get to it before the Sept. deadline & wanted to me lock me in. Because of that fact, I was able to get a 20% royalty interest & 50% bonus lease payment paid to me in Jan. That is not what they had originally offered me,but I let them know I was well aware of the oil activity in that area & what oil companies were working in that area. My mineral rights are located in T 145, R 95 Sec. 23. Be patient & sit tight. Kay
Do update your contact information if it has changed. Recording a fresh statement of claim would be a good way to keep current.
Dear Carroll,
How many mineral acres are coming open in a year?
Kay Maas said:
Carroll
You don't need to do this. Believe me, the landmen are very well aware of what's coming up for lease. If they are interested in your property they will be contacting you. If you act to anxious or try to push the deal, you won't get the best deal. I've leased my mineral rights many times. You didn't say where in Dunn County your mineral rights were located. I just "top leased" my mineral rights in Jan. for a lease that was set to expire this Sept. They were top leased back to the same oil county as they planned to drill just didn't know if they would get to it before the Sept. deadline & wanted to me lock me in. Because of that fact, I was able to get a 20% royalty interest & 50% bonus lease payment paid to me in Jan. That is not what they had originally offered me,but I let them know I was well aware of the oil activity in that area & what oil companies were working in that area. My mineral rights are located in T 145, R 95 Sec. 23. Be patient & sit tight. Kay
Thank you for your thoughts. Patience seems to be the best advice. Our interests are about 12 miles NNW of Halliday, ND. just below the South edge of the Fort Berthold. There are about 1440 acres held by family members.
Carroll,
You are a bit premature on this if your lease still has a full year to run. Typically about six to eight months out is when you'll begin to hear from those interested in top leasing.
Yet it is good to plan ahead and be prepared. You're wise to create a list of potential Lessees. So when interest does pop up you can try to expand that pool of bidding parties.
Via the NDIC site, in the meantime watch activity in your area (your township and all adjacent townships). List company names who have pooled lands, permitted, or drilled wells. Then start a list of the production numbers on any nearby wells. In addition, list those who pick up any state or federal (BLM) leases, noting the lease bonus amounts paid on the government tracts. This should have you better prepared when the time comes as you'll have a sense of how desirable that area is. Good luck. Hope you can strike a great deal next year.