Hi. I received a final lease offer of $150 pma for two (2) years and $250 pma for the remaining three (3) years with a 20% royalty. This lease is for 44 acres in 47N 74W Section 2 in Campbell County, Wyoming. This offer is considerably lower than our previous lease in 2015 for $550 pma. Considering the current oil climate, is this a fair offer? Should we reach out to other companies and what happens if we don’t sign? Our lease expired in October, 2020. I would appreciate your assistance.
Hello D:
I don’t have any info on the going rate for leases in that area but if you want to see who has permits in your general area, you can use the WOGCC web site. Go to DATA, then on the right column of menu items you’ll see Permits. Then choose Download APDs Waiting on Approval & you’ll get an Excel database you can sort based on the township & range fields & you can see what companies have leases in the general area. I did a quick search another way & notice that Anschutz has permits in a township/range next to yours. If you don’t lease & they actually get ready to drill, they’ll initiate a force pooling, but you’ll get a warning of that & IF you learn they are about to drill, your bargaining power will be greater. However, if you don’t sign a lease when they’re offering & they never drill, you’ll have missed out on the signing bonus.
Thanks so much for the information. I wasn’t sure about pooling, but feel better about it now. We may reach out to the company you mentioned. Take care.
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