Been offered $750 on Sec. 22?

Oil and Gas Leasing Help
1

I have been offered $750 an acre in Stephens County, Section 22-Township 2 South-Range 4 West. Is this a fair price? 3 years & 3/16th royalty. Any idea on the average sale price in that section? I’m a total newbie :-0

2

Thank you Rick. Should I “counter” at a higher price or just sit tight? Is there activity in that section?

3

Bill,

I would counter for 1/4 and then negotiate bonus. This will probably be held for decades. Include clauses i.e., depth, Pugh etc.

4

Bill A,

More important than the bonus is the operator and terms of the lease under measurement for payment, deductions etc. Operators that have your minerals in their sites will pay many times what you are offered and will have a higher probability of getting production payments to you. After all it is the production payments that are the goal in most owners’ minds. Be patient. You are in a very good development area with at least 2 good operators nearby. If you ask a higher price you may be get locked into an unfair deal for you given your location.

5

Thanks Gary,

Sounds like being patient is the best strategy for the time being!