Getting an offer of 10k/acre at 3/16 lease. My thought was don’t they have a rule of thumb of 3-5 years of production? Wondering what’s coming that they’d offer this much if anything? Anyone getting offers like this in this area?
Most likely because there are three-four multi-unit horizontal wells per section all around you. Leasing is active in 6 & 7 in that township. Ovintiv, Warwick and EOG are infilling wells near you. Warwick already has a surface pad in the northern part of 6, so convenient.
Thanks for the that information. So this is incoming in the near future? Now I’m wondering if it’s time to sale or not. She currently brings in less than $200/month from what’s currently there. So I guess they are planning to pull that much in a 5 year period? Sounds like it’s to good to be true.
I do not have insider knowledge, but highly likely within five years. This year may be slow to to lower prices, but depends upon if the operator has deep pockets and it fits their portfolio plan. Most buyers offer an amount in the 3-5 years, but our family hangs on for generations and has a longer point of view and have usually received more royalties than we were ever offered if we were patient.
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M_Barnes thank you for you valuable input and taking time to respond its appreciated!