We have received an offer to lease in this section for $800/acre. Can anyone let us know if this is the going rate for the area. Thanks in advance.
Kenneth, There is not a lot to compare to right now but I would say $800 is a little low depending on the royalty % they offered. The most recent pooling in that township was Newfield Exp. in section 14. the options offered were:$1100/ac.-1/8 $1000-3/16 or $950-1/5. Newfield also has applications pending in sec.13,18,24,25 and 36. Conquest Land has taken some leases in section 8 but none have been assigned to a drilling operator such as Newfield so it's a little early in the game to make any predictions.
It is my experience in northern Grady County that Conquest Land leases exclusively for Newfield but as Michael correctly states you will not know for sure until the assignment is recorded in the Grady County courhouse. I also agree with Michael based on my leasing experience in northern Grady County that bonus on a 3/16 royalty should be at least $1000+ as I have gotten some at $1650 recently. Mine is in T9N, R7W and T10N, R7W.
Michael, thank-you for your response. I posted before I had a chance to check recent poolings and appreciate your information concerning that.
Michael Hutchison said:
Kenneth, There is not a lot to compare to right now but I would say $800 is a little low depending on the royalty % they offered. The most recent pooling in that township was Newfield Exp. in section 14. the options offered were:$1100/ac.-1/8 $1000-3/16 or $950-1/5. Newfield also has applications pending in sec.13,18,24,25 and 36. Conquest Land has taken some leases in section 8 but none have been assigned to a drilling operator such as Newfield so it's a little early in the game to make any predictions.
Lawrence, Thanks for the information. It was very helpful and I appreciate it. We will counter with at least $1000 x 3 x 3/16.
Lawrence Betche said:
It is my experience in northern Grady County that Conquest Land leases exclusively for Newfield but as Michael correctly states you will not know for sure until the assignment is recorded in the Grady County courhouse. I also agree with Michael based on my leasing experience in northern Grady County that bonus on a 3/16 royalty should be at least $1000+ as I have gotten some at $1650 recently. Mine is in T9N, R7W and T10N, R7W.