We recently recieved an offer of $750. 1/18 3yr lease from Kraken, is this a good deal?
Thansk, Jim
Jim:
Do you mean 1/8, instead of 1/18?
Our latest lease (in Mississippi) they have gone from 1/8 (12.5%) to 3/16 (18.75%)
About 4 years ago we only got $200 an acre for a three year lease with XTO for Richland T22N, R60E, Sec5, SW 1/4 (160 Acres), I believe that that was a 1/8th lease. We are currently looking for a company that is interested in our property.
So based upon my numbers, if your number is 1/8 and not 1/18, then I would think it sounds like a fair offer in my opinion.
Robert Carleton
888-832-2244, x 224
Jim, also see Mark Presley's posts from a few months ago. Some of the replies indicated that in some areas the offers are even higher.
Bob Carleton
Whoops! I meant 18%
Bob is correct, we were given $1800/acre and 20% on a 3 year lease in sec 11 & 12 of 24N 58E 3 months ago.
Based on my tracking, in addition to recent drilling permits pulled by Whiting, and Emerald, I believe development is just around the corner here. Unless you really need the lease $, I would be tempted to wait to see if your interests are drilled on, thus getting you force pooled into the spacing unit, and getting 100% of the royalties instead of only 20% !