I have a 1/4 Royalty on 40 Acres in 16-5N-7W and the lease is coming up in September. We have received an offer but I don’t want to sell myself short not knowing what the activity is in the area. Any info would be greatly appreciated! Thanks!!
Don’t rush and sign a new lease. Time is on your side. You may not get offers until a month or two after your current lease expires. — The offers you get will let you know your area’s activity and interest. You will probably get some responses here, but do not act until several months go by… ( just my 2 cents — thoughts will vary I am sure ) One problem is there are MANY flippers out there looking for cheap leases or sales. I bet I have received 40 or so offers on leases done last year — mostly just bargain hunters - if you can get two or more fair offers - you may be able to get a idea of what your plot is worth…
Curious who is doing the lease offering and at what percentage and bonus. Our extended family has 230 NMAs in 21, 5N 7W. We were negotiating with a Landman on behalf of Vitruvian for a top lease 2 years ago and received $2,200 plus 1/5th. I believe Gulfport now has the lease.
230 NMAs in 21, 5N 7W. UNIT drilled the Atkinson #1-21H from a surface location in 16 south into 21. First sales were in August 2017. You should be getting royalties by now. No more leasing since it is held by production now.
When 21 was pooled, the offerings were $1000 3/16, $750 1/5, $0 1/4. Section 28 was similar.
We currently have an offer to buy for $4250 per nma in 10-5-7…is that reasonable?
Yes, Matt, we have been getting checks, but they have been very disappointing. We have a 100’ depth clause in the lease, Vitruvian (now Gulfport?) leased the deeper depths from us with a top lease in December 2016, 3 year term beginning in July 2017
Can’t say. Seems a little low but areas outside the sccop/ stack seem to be cooling down at this time.
Suggest you create a new posting topic with those numbers. I did that when we were approached for a toplease and used responses to get the bonus from 1750 to 2200.
Wait until you get better offers… $ 18,000/nma is the best I have received, but I
hear offers of $35,000 are out there — but you do need a 50a or more to get into the big money/ – increased bargaining power — don’t be shy; tell then you need 20k/nmA and if they are just low balling they will be gone
it’s the wild west in this Purchase Market — don’t let them take advantage of u
We leased 115 nma in 2&11 7N 7W in 2016 for $4500 & 20% 3yr. I have had a lot of offers in the mail for $3000 to $12000.nma. Just trashed them…
Brad, that is a decent bonus offer, but you can get more. I can give you the names of who you should reach out to if you want to shoot me a private message.
Cam
Matt I negotiated $2200 per NMA bonus @ 1/5th for 230 NMAS for a top lease that did not inlude the upper depths hbp of the Unit well.