Hi:
I received a letter from Sagesse Land Co. in OKC today with an offer to purchase my interest in Sec. 2-16N-9W Kingfisher Co. (I'm not interested in that). The letter also stated Sagesse is offering to lease my interest for $3,500 per net mineral acre and 3/16 royalty, 3-year term, or $2,250 per acre with 1/5 royalty, 3-year term. No mention of who Sagesse represents.
I have never seen such a generous bonus offered, and wondered if I should be wary. I understand northern Kingfisher is on the edge of the Mississippian Lime Play, but still, that offer seems too good to be true without some catch. Haven't contacted the landman yet, wanted to see what people here know first. Thanks in advance for any information you can offer!
Angela, you had better keep your eyes open. Have you received the pooling order? Newfield filed here. and it was supposed to have been reopened on Sept 12. Looks like it might have been set for Oct 6. News should be out soon. Or this is why you are suddenly getting an offer if it isn't settled yet. Those values sound like they are in the ball park.
The have permitted a multi-unit in 12 going into 1. Smith Brothers 1H-1X. Looks like they are doing the same thing for 11 going into 2. Cause 201406129-T. The well plat is there.
This is the Newfield Merimac play which is pretty successful.
You need to ask the land man if he is a member of AAPL. Then who is he leasing for. Tell him you will not lease unless you know who is leasing. (Either is Newfield or someone who is trying to get in on the action.) Ask if they are offering a 1/4 interest. Then get a copy of the lease. Do not sign it. You need to check those clauses and get help here for what you need. I would actually wait for the FP myself. If it were me, I would go for 1/4, even if no $$. If you need some cash, go for the 1/5. This may have a very short time fuse on it. Do you know if your title is clear?
Friend me and I can walk you through your options.
Hi M Barnes:
Thanks for the info–this is very helpful. I have not received a pooling order on this property. Yes, the title should be clear. I sent you a friend request, will wait for you to accept.
Angela
I accepted, but it hasn't quite registered yet. Give it 24 hours.
Angela Havel said:
Hi M Barnes:
Thanks for the info--this is very helpful. I have not received a pooling order on this property. Yes, the title should be clear. I sent you a friend request, will wait for you to accept.
Angela
It's not too good to be true. Very high leases are being offered in your area. $3500 is probably the top end. Depending on what you want in your pocket vs what you want as a royalty, should be your overridding consideration. If you have a lot of acreage, then a bonus can be very rewarding AND money in your pocket. If you have a greater desire to gamble, then you could make a lot more money by taking less bonus and more of the well. The one fifth might be a good compromise.
Thats cheap for the area actually. I have heard some are getting 3,000 an acre at 25%, if they need your acreage or if its a big enough tract in the section to make a difference. The land cost to put together abunch of 5 acre or smaller tracts is very expensive. If they can get it all done with one owner you have a lot more ground to stand on with counter offers.
To everyone who responded, thanks for all the great info. Good to learn more about this productive area of Oklahoma. Turns out Sagesse are speculators rather than representatives of an oil company, by the way.
How many acres is enough to warrant a premium? Our family has 180 acres in this vicinity. How much would the premium be for us to negotiate as one?