Hello,
Just received an offer for these terms:
Lease for $200 per net acre, 3/16th royalty, 3 year term.
Lease for $350 per net acre, 3/8th royalty, 3 year term.
Purchase for $600 per net acre.
We're not familiar with this land. It is Sections 21 & 28-7N-2W in McClain County.
Any advice is appreciated.
Thanks,
Greg
Seems low. What company is that?
According to pooling records on the OCC website for the last 6 months they are awarding $225 for 1/8 and $175 for 3/16. I think your figure above for 3/8 royalty is probably 1/8 because 3/8 is a higher % then 3/16. I would not suggest you sell because this seems to be a developing area.