just got an offer to lease mineral rights from Heller oil. out of Ardmore. sec 19 1W 2S Carter co $650. per nma with 1/4 royalty.
is there any activity in this area is this a good offer?
Do you mean 19-1S-2W or 19-2S-1W? The township usually goes first in the description.
OOPS
Thanks for your reply
The correct description is 19-1S-2W
Thanks
Continental is planning to drill a deeper horizontal well. If Heller is offering for the deep rights, then you are probably open at the deeper level. 1/4th royalty is what I like to go for. I cannot comment on the bonus amount, but I usually ask for “what is the highest that you can go?”. Make sure that you get a no post production charges lease. If you have not leased before, it would be very wise to get an attorney to review the draft lease and make suggested edits that will me more to your favor.
I was just going to mention that I have had several good experiences with Heller but, nonetheless, everything that @M_Barnes says above about doing your due diligence is good advice
What is the best way to determine if the price offered to drill is fair?
Not sure exactly what you are asking. Amounts to lease or buy or the AFE for the operating of a well.
The AFE of a well is determined by the operator’s drilling and engineering group according to bid that they have received to do the actual drilling (with some contingency).
If leasing, then what the competition is in the area. If buying, what the competition is in the area.
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