Current terms for O&G lease in 2-5N-9E, Hughes 5/2022

[Stephanie_Wilbanks]

Have a low ball initial offer. Company only has 50 acres leased.

According to landman, company will file spacing, MUHW (??) and pooling app this week.

Initial offer was 0 and 1/5, 50 for 3/16 or 75 for 1/8. Looks like 1970s! Yikes. With energy prices soaring, this is not even in the ballpark. 125 was highest bonus in 5-9 with 37 wells drilled in last 12 months per OK Min Owners Registry. For my minute mineral interest this is probably the highest net min acres.

Input? Probably have 3 weeks max unless usual extensions take place. Thanks, my friends.

[M_Barnes]

Offers are down this year especially in areas where there is not much competition. Doesn’t have much relation to the price of oil or gas at this point. As you know, the clauses in the lease are much more important than the bonus amounts. I frequently go for the highest royalty even if there is no bonus.

[Stephanie_Wilbanks]

I’m getting old, Mollie. Sometimes I wonder if I will make it to the golden day of “first production.”