Help on royalty decision in Grady County May 2019

Oil and Gas Leasing Help
1

We received notification of a pooling order Sec. 30, 9N, 7W in Grady county. We have just a few days to select one of the following options.

  1. $4400/acre plus 1/8 royalty
  2. $4200/acre plus 3/16 royalty
  3. $4000/acre plus 1/5 royalty Please recommend the best royalty option in your opinion.

The Company involved is Roan Resources, LLC. Thanks, Pat C.

2

I usually select the highest royalty and the lowest bonus (1/5th in this case) as the long term payout is usually higher. You only get a bonus once and it can be small in comparison to the payout from multiple wells if they are drilled. I want that higher royalty on all wells.

3

Thank you very much for helping me with my decision!