Received a bonus offer for an Oil and Gas Lease in Section 4-9N-4W in McClain County, Oklahoma from Pinson Land Services. They are offering a 1/5th royalty interest for 3 years and a $250 per net mineral acre bonus. The lease also provides for an option to extend the lease for an additional two years by paying an additional $250 per net acre.
This seems to be a low-ball offer. Is it? TIA
I never go for the two year extension and always ask about 1/4th. Also recommend getting an attorney to look at the lease because It will most likely need some major changes.
Bonus amounts are not public, but you can use Poolings as a proxy. Fourpiont just pooled for $2000/ac 3/16ths, $1500 1/5th and $0 1/4 in section 5, in April, 2023 so your offer is low to me. The section is contiguous and the offer was within the last 12 months. Ask for at least that amount- case 2023-00861-T
Love your accurate and correct answers m_barnes
This topic was automatically closed after 90 days. New replies are no longer allowed.