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Oil/Gas/OK;Caddo Co;19-9N-9W


Dear Mr. Scott, I have received 2 offers from Calvin Energy to lease 13+ acres in Caddo County, OK. Sec. 19 9N-9W. I was told it would be drilled for oil, but with gas prospects. My limited research indicates it is a new company and as a result does not have a proven track record. Is it a reliable company with which to do business?
Both offers, one FROM Calvin, the other leasing FOR Calvin are for $400 per net mineral acre, 3/16th; 3 yrs.; desiring a 2 yr option @ $400. Is that a fair and current value? Would you accept that offer or  with what would you counter?  As it is a large property, it may not be drilled within 3 years, so in the meantime, can other companies compete for the property?

Your previous advice has been most helpful and appreciated. Thank you in advance for assisting me in making a good decision. Sheryl

I have heard of Calvin Energy, but don't know anything about them as an operator really. As to the offer, I'd try for $600/acre and 3/16 royalty for three years, no extension. I usually tell companies that want an extension that I'll be happy to lease to them again in three years at the then current rate, but am not interested in tying up my minerals for five years at today's rates unless they are willing to pay double in the event they exercise an extension option. For example: $400/acre for the first three years, then $800/acre for the extra two years if they want to include that option.

That said, Calvin Energy is currently the only company leasing in your section so as the "only game in town" they may not be willing to negotiate too much. Couldn't hurt though, and the more acreage you have that they want, the more negotiating power you'll have. 13 acres is better than 5, but if you owned 80 you'd probably be able to drive a harder bargain. Perhaps you have some acreage in nearby sections they might also be interested in? Sometimes a company will offer better terms on a "multi-section" deal than they would otherwise.

I did notice that Kirpatrick Oil and Gas (probably an Oklahoma company) has bought some leases in adjacent Section 29 this year. You might try contacting them to see if they'd be interested in your section 19.

Hope this helps you out.
Frederick M. "Mick" Scott CMM RPL
The Mineral Hub  


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Frederick M. Scott


Oil and gas leasing, lease negotiations, how to best deal with the oil and gas companies or their representatives, buying/selling mineral rights, forced-pooling, correlative rights, deeds and conveyances, and "post-production" costs. I am most experienced with Oklahoma properties and laws, but am able to answer questions concerning other oil and gas producing states in many cases.


I am a Certified Professional Mineral Manager (CMM) certified by the National Association of Royalty Owners (NARO) in Tulsa, OK. I am also a Registered Professional Landman (RPL) with the American Association of Professional Landmen (AAPL). I have managed my family's oil and gas properties in Oklahoma for over 10 years and have dealt with many landmen, title analysts, attorneys and other oil and gas professionals in the process. I have written several articles which have appeared in various oil and gas industry magazines and newsletters. I have negotiated and drafted leases, prepared deeds, affidavits, and other legal instruments relating to my own minerals, as well as performed title, legal research, and curative work for same. I have acquired a good deal of knowledge on the subjects of oil and gas law, mineral appraisal, and landwork over the past ten years, and also worked as a professional landman and lease buyer for a time. I've seen the business from "both sides" and therefore feel confident I can help out most of the folks who ask questions in this forum.

National Association of Royalty Owners (NARO); American Association of Professional Landmen (AAPL)

National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, The Mineral Hub, Landman Magazine, and several royalty owner association group's newsletters.

Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

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