Received an offer today from MK&P in OKC for 3 years, I’ve requested a copy of the lease to look over the details of the offer but is this pricing in line with current expectations assuming the lease terms are good?
Private offers are not known, but to give you an idea, the pooling in sec 22 just next door was $3100 3/16th, $3000 1/5, $1200 1/4 just a couple of months ago, so that would be where I would start. Pretty sure that you are going to have to negotiate the clauses in the lease to become more in your favor. It will probably not have the protections clauses that you will need such as no post production charges, no two year option, no top lease clause, no warranty, depth clause, commencement of drilling, limit on shut in time just to name a few. Not an attorney, no not giving legal advice. Just very careful on my own leases.
The 22% offer would be somewhat intriguing at that price, but I usually go for the highest royalty as that usually pays out in the long run. Since 1/4 was offered in the section contiguous, I would ask for that and fix the lease to meet my mineral friendly clauses.