I’m a newbie and have an offer of $1125 per acre and 3/16 and I know very little. One family that retired from H and P said to pool and get a 1/4. Need help.
I am with the retired H&P family member... if 1/4 is one of the choices in the pooling go for it. If you do lease you want a very good exhibit A as part of the lease. I think the $1125 and 3/16 offer is way low for your area.
Thanks any idea on the acreage offer price I should counter at?
Based on the sale of some section 34-6N-5W minerals 2 years ago @ $17,500/per acre, I would counter with $5,833.33 and 3/16 (if you are determined to lease). I reviewed several leases in that section and did not see one that favors the mineral owner. There was not one lease with a "no deducts" clause (very poorly written Exhibit A's if there was one at all).
The Lessee's recover their lease bonus in very short order when they start drilling wells and the Lessor (mineral owner) is the big loser.
The closest recent pooling was by Marathon for $2700 3/16, $2500 1/5 and $2000 1/4 in section 15-6N-5W, so you can see the amounts could be much higher. 34 has a pooling order pending. Whatever lease they are offering you is not in your favor, so friend me if you need some help on the "gotchas".