Greetings,
We received an offer from Silver Energy for our net 3 1/2 acre interest in Section 5-7N-7E:NE/4 SW/4 in Seminole Co. We have other operating interests in Seminole Co. My understanding is that this 160 acre (we have 14 net) is being split up to 40 acres to avoid a Pugh Clause. Does that make sense? Offer is pretty standard 3/16 w/ $150 bonus, but has stronger language regarding what constitutes production. Any tips appreciated. We are guilty of signing most leases straight up. Thanks, WSD