Crooks on the loose in Caddo County, Oklahoma

Oklahoma Mineral Owners,

Pretty Boy Floyd looking awfully content with himself after cold drafting an Oklahoma oil and gas mineral owner.

As we have discussed previously, it is important that you are aware of the financial condition of your potential lessee before agreeing to an oil and gas lease. While exchanging a check for an oil and gas lease is the best way to trade, many fly-by-night lease turning operations still prefer bank sight drafts. The reason for this is simple, it allows them to control mineral rights (your mineral rights) for a specified period of time, without paying for them. Be aware that receiving a draft usually implies that the lessee has not run title on your interest and likely won't close on the oil and gas lease you negotiated unless he can find a buyer to flip it to during the term of the draft. 

Berlin has received a number of calls recently regarding an Oklahoma outfit leasing in Caddo County who has been sending 90 business day sight drafts (that's four months) and filing the leases in the meantime. Some of the lessors have been without payment for over six months. This is borderline criminal behavior and gives all landmen in the area a bad name. If approached by a company like this, it is recommended that you call other active parties in the area for better payment terms. If would you like the respectable parties leasing in Northern Caddo County, Oklahoma, please drop Berlin a line or an email to inquire. 

More to follow,

Berlin

Have you given up on this project?

Just a couple of war dogs, Amos Tversky and Daniel Kahneman toast to their partnership in the 1970s.  Courtesy of Barbara Tversky

Oklahoma Mineral Owners,

Have you ever tried to contact a company landman or lease buyer and never hear back from them? Of course, your answer is "yes." I recommend you email them the following..."have you given up on this <project/lease/trade?" This phrase triggers an immediate reaction in the recipient. Research has shown that loss aversion drives action more than the desire for gain. Or, call Berlin at 918.984.1645 if you would like to sell your oil and gas minerals. We will always answer and listen to your initial offer. What other negotiation tactics have you found to be the most useful?

More to follow,

Berlin

Marcus Aurelius and Lease Bonuses

"My buy it now price is $1000 per acre and 1/4 because that's what my cousin got from Newfield in 2N-4W." 

Begin each day by telling yourself: Today I shall be meeting with interference, ingratitude, insolence, disloyalty, ill-will, and selfishness – all of them due to the offenders’ ignorance of what is good or evil... 

-Marcus Aurelius, Meditations

The value in real estate is in the location and oil and gas mineral rights are no different. Being in the same state is not a valid comparison, being in the same county in not a valid comparison and sometimes even being in the same township is not a valid comparison. Having a reasonable idea of comparable lease prices will make you a much better negotiator. Asking for triple the price ensures you won't get leased or you will get force pooled without the clauses of the oil and gas lease to protect you.

More to follow,

Berlin