Hello, I am being offered $100 /ac with 3 years at 3/16th to lease Sections 164 and 204 . It seems low to me. We leased at $180 /ac @ 1/5th a few years ago. Any ideas of what the going rate is at this time? Any insight would be welcome.
The 164 and 204 in Block 2, correct? (Abstracts A-1376, A-1603, A-1871, A-1854)
$100 seems like the right ballpark but you’re near enough to activity that I’d try for 1/5th and reduce the bonus if you need to get it. Making sure post production costs are not included is also worth negotiating. 1/5th with no PPC would be ideal with drilling and permits within a few miles of you.
This map is colored by activity: dark blue = 2019-2020, light blue = 2000’s, yellow = 90’s, orange/red = older. Moriah Operating has a rig running ~6.5 miles away (and the rig company they’re using, Power, is top notch!). Diamonds are permits, colored with the same scheme (darker = newer).
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