I inherited a very small share in a well that is about to be accessed, in dodridge co. .00067 net ac. Antero is offering 350. rate bonus and 15% royalty. Because it is so small I was wondering if it is a good offer?
The size of your share has nothing to do with it. Everything is in percentages – no flat rates.
Royalty should be at least 16%. Try for 18%. $3500/net acre bonus. Ask them to pay the federal excise and production taxes. Read the whole lease before you sign.
Some differences in the geology in different parts of the state of WV. Some gas is “dry” (primarily gas only) wells in other areas produce “wet” gas (has more oil and other petroleum biproducts which are also sold for profit). Wet wells are more valuable.
Interesting!!! We are fairly new to having mineral rights in West Virginia
1 Like
With that small of an interest, I would get “gross” at the wellhead on your royalty %. Don’t sign a post-production lease or your 15% will turn into 6 to 7%.
This topic was automatically closed after 90 days. New replies are no longer allowed.