Got an offer from R.D. Williams & Co to lease in 17-3S-4W for HMD Oil Co. to drill 4,000’ well. A while back they offered 3 options (1) to participate, (2) to lease for $150 for 1/8 RI for 3 years, and (3) $100 to lease for 3 years at 3/16. From what I can see nearby, this is a low lease offer. Any thoughts of suggestions?
A 4000’ well is pretty shallow hence less money offered than for a section that may have multiple reservoirs that are deeper. You need to ask what reservoir will they be drilling, when are they going to drill, etc. Also, if prices for oil and gas are lower now than when you got the last offer, that could have something to do with it. Make sure you get a depth clause for your lease, no post production charges, etc.
Current offers in that township are higher. I have interest 1 mile north of you in 10 03s 04w with a current offer of 500 bonus & 1/4 Royalty 3 year lease.