12-11N-13W Caddo County

I received an offer for $750/acre from Compass Energy. The last lease I signed was $1800/acre back in 2017. Obviously different times but curious if this is a fair offer for the current state of the industry?

3/16th royalty with a two year option to extend of $750/acre. Pretty standard lease.

Company doesn’t seem interested in negotiating any terms. Thoughts?

Lease offer bonus amounts are running lower this year.

You might want to read the recent postings in Caddo. Folks are comparing offers. Personally, I would never lease with a two year option as that is rarely in the mineral owner’s favor and implies “speculation” to me. Who knows what bonus amounts might be in three years. And I always ask for 1/5th and 1/4th to see what they say.

“Pretty standard lease” is pretty unacceptable for me. Those draft leases are usually in the operator’s favor and require a good bit of editing and negotiation. Suggest that you get a good oil and gas attorney to review any lease before signing. A lease can hold your family for decades and if it has post production charges in it, it will cost you a lot of money in those decades.

Thank you @M_Barnes for the feedback. I definitely expected much lower lease bonus payments. Just hoping to get an idea of a reasonable offer. I will definitely remove the option and double check the post production costs. Thank you again for the information! I really appreciate it.

Following up on this thread. Sounds like most offers are $500 - 750 / ac, 3/16, 3 yrs with option to extend. Has anyone had success with negotiating a lease up in Caddo Co? If so, where did it land? Thanks for any guidance.