We have a Lease offer in Section 16-12N-24W. Silver Oak Natural Resources offers: $500/ acre , 1/6 th royalty or, $350/ acre , 3/16th royalty.
Anyone signed for Higher.?? Thank you.
Is the first offer for 1/6th or 1/8th? Usually 1/8th is the lowest royalty. I usually ask what they are offering for 1/5th and 1/4th to see what they say. I ask who the operator will be, when they plan to drill, what percentage of their leasing has been completed, what reservoir are they aiming for, when will the OCC cases be filed. etc. If the answers are vague, I wait awhile to respond until more data is available. You also may have the option to be pooled which has its own advantages. If you do decide to lease, it would be wise to get an oil and gas attorney to review the draft lease because they usually need revisions to be more in the mineral owner’s favor.
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