Re: T159N R101W Sections 6, 7, 8 1100+acres Offer is 4 years, 2 year renewal option, bonus 500, additional 500 with renewal., 18.75% Planning to counter with 3 years, 20% but unsure how far to push bonus and gas capture. Any thoughts?
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Make sure you make a separate lease for each section. Suggest that you DO NOT put them on the same lease. I see one lease filed back in 2023 at 20%, only two others at 1/6th in 2024. KODA has permits in the townships just north of you for three section horizontals.
Thankyou. There are 6 cousins and all leases will be separate.
If each cousin has part of each section, then make sure each section is on a different lease by cousin. If you do them all together, then they could drill on one and leave the others stranded and held by a lease. If they are independent, it is safer.
We have signed a few leases in neighboring townships over the last several years. We have not been able to secure the 3 year terms anymore. Everything is 4/2.
I’m suspect you can do better than $500/acre bonus, but it is also dependent on how much of the unit you have–how much or the unit do they/will they need for control? Royalties are between 18.5 and 20–again depends how much they want your acres. Have you talked to more than one Landman?