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Oil/Gas/Lease Carter Cty. OK


Leased to Bearcat Land 12/12. Received letter from them 8/26/13 that Continental proposes unit well S11 3S 3W to test Arbuckle and Woodford, Tot. Vert.12757 With Tot. Measured 17558.If no show in Arbuckle will plug back and drill Horizon. Lat. in Woodford. Dry Hole cost @7Mil. and completion with 14 stage Frac. 10.8 M. Continental offers participation,Lease at $600/ac 1/8th,or $500/ac 3/16th.Is this a top lease and/or farmout type of arrangement? What are pitfalls for me as a royalty owner, and what is your opinion of the prospect? I assume that this is because Bearcat does not have the resources to drill. Am I correct?    Thank You.

Bearcat Land is a land company that was hired by an oil company (perhaps Continental) to buy leases for them, so Bearcat would not be a driller. Not sure why you received another offer to lease/participate, as Bearcat was likely leasing for Continental (but not 100% sure about that...could have been another company.) At any rate, I'd contact the landman who sent you the latest offer and ask him/her if they are aware you leased to Bearcat in 2012. They will be able to tell you if this is a "top lease" offer or was just mistakenly sent to you because they assumed you were not currently leased.

As for "pitfalls" that's really a lot to get in to here on this free forum so I won't attempt an in-depth discussion on that. It's probably not even applicable here since you're already leased. The letter you received apparently included an "AFE" (Authorization for Expenditure) showing what their proposed well would cost in case you wanted to participate in the well by paying a share of those costs up front (not recommended) as well as a lease offer.

In the future (since you're already leased this time it seems) I would be sure to read any lease you are asked to sign prior to doing so, and if you don't understand all the terms get an oil and gas attorney to help you figure them out.

You may also be interested in reading through the articles I've published in the Mineral Hub Dispatch; one of which has to do with Oil and Gas Leasing Tips.

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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