We are in 33 and 34 (101 acres total). We are getting ready to sign and are getting offers from $1,900 to $2,200 per NMA @ 1/5.
I hope you are talking about an oil and gas lease, NOT a mineral deed!
Be very sure you negotiate a good lease there. If you read the draft they send you, it will not be in your favor and will need quite a few changes. You may want to contact an oil and gas attorney. With that amount of acres you do not want any post production charges at all and will need some other significant changes. Make sure you do not send an original lease without getting a check in hand at that moment.
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Yes, it is an oil and gas lease, with our ex. A which included a watertight no deducts clause, habendum, shut-in, PUGH, Commencement of well, depth clause etc. and they agreed to strike free lease use in lease. Its 3 year no option. We have had a ton of people wanting to lease in the last few months.
Nice! Sounds like the homework was done on this one. I’m just North of you in Section 13.
Laura-Those sound like good offers for a lease. The intent to drill the multi-unit well has been filed, so the interest should pick up. Mind sharing who is making those offers?
Seems a little low for the activity. I’m sure you can get better cash than the $2200/acre, maybe more royalty than the 1/5th too.
We settled for $1900/NMA @20%, my unedited ex A and an edited OGL of our choice. The $2200/NMA didn’t get back until we had signed with another company. They were Quantum, Ace is in there at $1750 but balked at part of the ex A, a guy called this morning willing to do $2000. Continental/Redsky were at $1800 but they didn’t like most of my ex A and never got back after the initial offer and back and forth. The flippers are topped at probably about $2000. If you can find a company that wants to participate you could do better, but beware of lease use clauses and have a good no deducts clause.
Sounds like you did a good job. Congratulations.