Receive call from broker who represented he was working for Continental Resources. He made and 250/acre offer for my 75 NRI lease. What are lease values in this area?
What royalty is that for per mineral acre? Always important to link the offer per acre to the royalty. Because you said NRI which is a net revenue or royalty acre, that does not mean you have 75 acres. It is normalized (usually) to 1/8th. Many offers tend to start low and then get higher as they get closer to drilling. The actual words of the lease clauses are so much more important than the dollars offered as they can hold your family for decades and decades. Most Continental leases need some negotiation.
Lease prices are not public knowledge. The closest you can come is the pooling information from contiguous sections. Citation had a pooling of section 4 within the last year at $400/ac at 1/8th and $200/ac at 3/16th. Continental has section 2 pending, so that will give an idea for section 3.
I would start by asking 1/4 & 2500 an acre, no deducts, with a depth clause that releases everything below true vertical depth, no government agency can alter lease. Define paying qualities as a $500 over operating cost for starters. If refused I would see them at pooling hearing.
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