Hi all, I was recently made an offer for my 1/8 interest in my Canadian, Oklahoma lease property. Township 34, Range 13N, Section 10W. I’m new here and was wondering what info I can get about this land and its worth in the selling market today. I was made an offer just recently and it seemed low. Thanks in advance.
Welcome to the forum. Royalties and bonuses are inversely related. The smaller the royalty, the larger the one-time bonus. Most savvy owners opt for a higher royalty as a lease can last for decades if the well produces. Additionally, it is important to have a lease reviewed as the terms greatly favor the operator.
These days a 1/8th royalty is rather low. 3/16th leases are common. Some individuals get a 1/5 or 1/4. Also, read many threads. Never turn over a lease before receiving payment.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
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Offers to buy are usually sent out when “someone thinks they know something”. You have one horizontal well already and room for quite a few infill wells. Section 35 already has infill wells. You might want to sit back and wait to see what happens.
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