Our rights in T7N R61W 6PM S24 NE4 & NW4 have an astounding 400%+ difference in bonus offers in less than 45 days involving different three land services. I’ve researched available information at ECMC/COGIS for why and can’t reach a definitive conclusion. I then reviewed our attorney notes (who’s in Centennial, CO) where he suggested $375-425 NMA in 2017. Still being perplexed I’m looking for any guidance, recommendation’s or where I could find any additional information to help with my decision.
Thank very much, Jon
Are you looking at the same royalty bonus pairs? You will usually have higher bonus amounts for lower royalties. Most of us prefer a higher royalty and expect the lower bonus. A successful well or wells at a higher royalty for many years will far outweigh the one time bonus.
Which state and county are you asking about? Colorado? If you are in 24-7N-61W, Weld, then the potential for multiple horizontals is very high and permits are being filed in neighboring townships. Someone might know something that is pending. Civitas had quite a few permits scheduled in the section a while back, but they cancelled them.
You cannot compare bonus amounts from 2017 to now. Competition is very different now. Get a good attorney to review any lease.
Thanks for your input Ms Barnes and I apologize for not emphasizing Weld County, CO.
The royalty is the same on each offer, as was in 2017, 3/16 (18.75)%. With a higher potential for directional boring, and being a novice, I would think that as long as the royalty stays the same the bonus amount should increase from a 2017 amount.
Best Regards, Jon
The bonus offered depends upon the competition at the time of the offer. There was a time in the near past when bonus offers were much higher. Not so much right now.
So far, I see leases by Bison IV, Hawk Resources and White Eagle filed in that section.
Ms Barnes, thanks once again.