Hi all I was recently made an offer for my 1/8 interest in my canadian ok lease property. 34, 013N 010W. Im new here and as wondering what info ican get about this land and its worth in the selling market today. I was made an offer just recently and it seemed low. Thanks in advance
Welcome to the forum.
Royalties and bonuses are inversely related. The smaller the royalty the larger the one-time bonus. Most savvy owners opt for a higher royalty as a lease can last for decades if the well produces. Additionally, it is important to have a lease reviewed as the terms greatly favor the operator.
These days a 1/8th royalty is rather low. 3/16th leases are common. Some individuals get a 1/5 or 1/4. Also, read many threads. Never turn over a lease before receiving payment.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
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