I received a lease for 2 years with 3yr option @ $350.00 and acre. That seems low to me, any suggestions.
Personally, I do not like options as a whole lot can happen in five years. And they are totally in the driver’s seat on that option. I do not do them. The royalty of the lease is more important to me than the bonus as I prefer 1/5th or 1/4 in an area that will likely be drilled. And even more important are the clauses in the lease. In general, lease offers are lower this year because oil prices are much lower than last year. Gas areas tend to be lower, also due to price. Native has some pending poolings near you. I would wait and see what they are before committing to anything.
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Agree with Martha, for most of us the bonus will not amount to much but the royalty can last for decades and generations. Royalty and terms are what needs to be analyzed.
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