We received an offer to lease. The property was currently under a 5-year lease but the lessee did not make payments for years 4 and 5 and now another firm wants to lease it. Can we go ahead and just re-lease it or do we need to provide some type of notice?
Does anyone know what the market rate is in that area? I have not been keeping up with pricing in the last 3 years.
All feedback is appreciated.
Section 20 of what Block/Township?
If you are talking about a 3-year lease with a 2-year option, and they didn’t exercise their option, then there is no lease—unless they drilled—in which case, hopefully, you have a Pugh clause to protect you? For value, you need to supply more info on location.
There should be nothing to prevent you from leasing.
You say section 8, but what Block, Township, etc.
JimV,
I sent you a friend request to discuss property in Reeves County.