Should I lease a small parcel in Greeley to Mineral Resources?

Colorado Mineral Rights Weld County, CO
1

I am a newbie to mineral rights, so please forgive my ignorance. As owner of a small parcel of land (about 1/2 acre) near 6th Ave and 20th Street in Greeley, I was contacted last year and again about a week ago by Mineral Resources by letter wanting to lease my mineral rights for horizontal drilling. I did not respond last year to their offer of 12% royalties, believing it was too low. Now they are now offering a signing bonus of $300/net acre and a 14% royalty interest with a 5 year term.

First, what is "net" acreage and how is "net" acreage different than standard acres?

Secondly, and most important: Is this a good deal? It's not a lot of money we are talking about for only 1/2 acre so I don't want to get overly involved for not much gain. Any advice would be greatly appreciated! Thanks.

2

Hi David,

If you want to call me I can answer your questions. I am very familiar with that area.

M. Smith 720 723 2770

3


Hello Michelle,

We have property west of Nunn, CO & was wondering what the going rate is per acre & the lease terms.

State of Colorado, Weld County. Section 22: W/2 Section 8: SW/4 Township North, Range 66 West.


michelle Smith said:

Hi David,

If you want to call me I can answer your questions. I am very familiar with that area.

M. Smith 720 723 2770

4

How many net acres do you know?

5

Dear Rhonda, the Townshipnumber( s/be a 5N or something like that) is missing on your legal. Can you add that to the legal description please or call me at 720-723-2770? Thanks!

michelle Smith said:

How many net acres do you know?