I have received a lease offer for T17S, R37E, Section 29NW4 for a 3 year term with an extension for a sceond 3 year term. Bonus $350 per NMA paid up front. Royalty 1/5. I would appreciate any comments/recomendations on this offer. Thank you.
Welcome to the forum!
Personally, I do not agree to an extension as market conditions can change in the first three years. Most of the leases in the past six months in nearby townships have been at 22-25% royalty. Not sure about the reservoirs in your township. Local folks may be able to comment. It is always wise to get a good oil and gas attorney to review any draft lease as they usually need significant edits. An investment up front in good advice can lead to higher royalties over the life of the lease.
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M_Barnes Thank you for your advice/comments. They were very helpful. Murray
What state and town would be helpful