I got an offer from Balco Energy - lease $125 per acre, 3 year term, 1/8 royalty or $75 per acre, 3 year term, 3/16 royalty. Is this good? Is there action in this area?
I can’t tell you whether or not the amount is “good”, but I always compare to the poolings nearby within the last year. Section 17 was leased in 2020 for $250 1/8th, $200 3/16th. So I would aim for that. HMD had a permit for a shallow well in that section.
Sections 10 & 15 have had a good bit of leasing by Continental in the last year. That might imply a deeper horizontal well in the future.
Any draft lease will need some negotiation as it is not in the mineral owner’s favor. Wise to get an oil and gas attorney to review the lease and make better changes.
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