I received an offer of $175 for 1/8, $150 for 3/16 or no bonus for 1/5. This is for a horizontal well to 10,000' and vertical depth of 4,750. It also offers participation in the well which I am not interested in. Does anyone else know of any lease activity in this area? I also don't remember the type of well being mention in the offer before. Any information there?
They are currently drilling a horizontal well on my property in Lincoln County. It is very active in Lincoln County at this time...a small amount of oil...mostly liquid gas and natural gas.
-Peter
The terms of the lease can be as important as the bonus.
Holly, I would think you could do better because their numbers are skewed. 1/7th less cash but 50% more royalty with the 3/16 deal over the 1/8 deal, I would say they are trying to herd you to the 3/16/$150 deal.
Holly, in your position I would wait, I think it's quite likely you would do better making a pooling election than the deal offered so far.
This helps a lot. Thank you.
I have not seen a 1/5 royalty offer on other parcels – 3/16 is the highest. Have others seen that type of offer ?
I have seen it in pooling orders in the area as an election. And also in leases in the County records.
I was given a 1/5 royalty but had to give up the option money up front.