Help with lease offer

There are no current leases in that section in the last two years. Leasing nearby has ranged from 1/8th to 1/4. Warwick was working in sections 4/9 to the east of you. There are Woodford horizontal wells in section 6/7 and and 9. Bonus lease amounts are not public. The closest estimate you can get is from a pooling within the last year in a section contiguous. Warwick pooled in section 9 for $1500 @1/8th, $750 @ 3/16ths, $500 @ 1/5th. Most of us would want the 1/5th as the royalties from a successful well(s) over many years would far outweight the one time bonus for the lower royalty.

If you have not leased in a while, it is wise to get a good oil and gas attorney to help with the wording as the draft lease is not in the mineral owner’s favor and needs negotiation. You can lease or you can wait for forced pooling as it has its own advantages.