In many ways it's a very personal decision and much depends on situation.
!. Do you really need that lease bonus @$60 an acre?
2. Do you really want to be leased for 16.67% until there is no more oil and gas to be had from your acres? 1/6th or 16.67% being only slightly above the 16% statutory minimum you would receive if you didn't lease at all until the well payed out and recovered the risk penalty.
I think it quite likely you would get a well if you lease that cheaply. Continental wouldn't be asking if they didn't see value in your acres. If your acres were not worth drilling at the rates that can be expected in the next 5 years, Continental would not be paying Diamond to obtain a lease from you.
The cost of drilling a well in ND has come down drastically. Continental could drill a $5 million well and hold 1280 acres by production and allow them to hold the whole spacing for the next 20 years for negligible cost or slight profit. I would be concerned Continental would do just that. I would be concerned that my minerals would be placed on the shelf for later development after the initial well to hold them by production. I have 4 wells in 4 different spacings drilled by Continental 8 years ago in their "One and done" fashion. No single one pays enough that I would notice it if it were gone. All of them together are not a great deal of money.
If you really need the money, something is better than nothing. I think there is a good chance you would get "A" well in the next 5 years. I wouldn't care to consider how long it would be before they drilled a second one. But your acres would look good on Continentals books of proven acreage.
In fact, with the fall of oil and gas prices, the acres that Continental has mortgaged have dropped in value. I think some cheap leases and some cheap wells would be a quick way to balance the books.
I am not in great need for that amount of money so I would politely decline the lease offer and tell them that if it's worth anything at all, it's worth more than that. Feel free to quote me. But it is your decision and if you did lease, I would go for terms over bonus 1/6th where you pay nothing but taxes can be much better than 3/16 where they nickel and dime you to death. Get a good O&G lawyer in that case to look over your lease.