We have been contacted by a landman with an offer of $2000/NMA, 25% royalty, 3 year oil and gas lease. Our family has inherited mineral rights on 20 acres of a 520 acre tract of Section 1, Block C-21, Public School Lands Survey. The operator is Resolute, who intends to drill a horizontal well under this tract in Section 1 by the 1st quarter of next year . . . assuming an improvement in the market.
Is $2000/NMA appropriate for this area?
How can we best research what Resolute and other operators are offering on leases and what kind of production is coming out of the ground around there?
This came to our family completely out of the blue and we’re having lease agreements pushed hard at us. Any help you can offer us (complete novices) would be appreciated.
Page 14 has information that I believe is regarding their activity in C-21. They call it their Mustang acreage.
In my opinion, you could probably ask for more (maybe $3,500) and see what the response is. It looks like a pretty active area for them and they are having some success there. We have acreage to the west and north of C-21 and the best I am getting is $2,500 but we don't have as much activity in the immediate area.
The more important part of the negotiation is the lease which you may want to have a professional review.