I have received offers for lease of my mineral rights for 24-4S-5E Johnston County,OK.
Greenstar Resources has offered me either $1000 per net Acre and a 1/8th royalty 3 year term
or $900 per net acre and a 3/16th royalty 3 year term.
Is this a good offer or can I get more?
also Redstone resources have offered to buy all or some of the land from us they have not given any prices so does anyone know what we should be asking for 3.33334 acres in the above location?
many thanks.
Russ
That's laughable that they think anyone would accept the first offer - because of the 1/8th royalty. You don't want that. Then for $100 bucks less on bonus, they raise it to 3/16ths. How did they figure the difference between an 1/8th and 3/16ths was a hundred dollars? Sounds like a really dumb offer in the way it was constructed.
Can you get more? I don't know. Advisors here will always throw out terms that you should ask for, but it doesn't mean they will be agreed to by the offeror. They can always say no.
Redstone Resources hasn't made an offer if they haven't quoted you a price. You could ask them what their offer is, and then post the amount per acre.
I will ask them what they are offering and post it asap.
Thanks for the reply.
Russ
The offer to buy the land is now at $10,000 is this a good offer or should I hold out for more?
$10,000 total, or $10,000 per acre? I think you mean total?
yes this is total not for each acre
Dave Quincy said:
$10,000 total, or $10,000 per acre? I think you mean total?
It's up to you. You are the owner. It sounds like a decent offer to me for about 3 and 1/3rd acres.
What's the area look like in general as far as drilling and production goes?