I have been approached by Permian Resources about leasing .18 acres in Eddy County Section 1, T 22 s, R 26 E. The offer is $750 nma and 18% royalties on 5 year lease with option for 2 more years. I’ve seen other questions about the same. Responses were it’s too low. The bonus from $1,000 to $6,500 and 25% royalties on 3 year lease without the kicker. I know location is what drives everything. Is this location one that could get more than offered? If so are there others leasing in this area. Thank you
Given that there are about six permits on that section, I would ask for more royalty, only three years of time and no option. Mason Oaks is also leasing in that section.
Thank you for your response. Does having six permits on that section impact the $750 nma offer also? I’m just looking for what would be fair and not one sided. Thank you again.
The bonus amount is more likely tied to the small amount of acreage and the royalty offer. Personally, I would want 25% and wouldn’t care about the bonus as the higher royalty will be more important.
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Thank you so very much! I hope you have a great day.