Received Lease offer from RedSky 1/5 RI , $1,300 Bonus 5 yr in Sec 20-1N-1E. I think 1/5 RI reasonable but was not sure about bonus. Can anyone confirm average bonus for that area? I think Continental will be the Operator & it is for the Woodford formation. Thanks
5 years is too long I wouldn’t go over 3. A lot can happen in 5 years.
Personally, I would not do a 5 year lease. Too much can happen in that time frame. Most I would do is a three year and that seems long sometimes. The clauses of the lease are more important than the bonus. I don’t sign Continental leases without really trying to get better terms.
Lots can go wrong in negotiation, execution and getting paid on a lease. Owners must be extra vigilant.