Just received an offer, looking for help evaluating it

Montana Mineral Rights Richland County, MT
1

I represent a charity that owns mineral rights in Richland County.

Township 24N, Range 57E, Section 1 Township 24N, Range 58E, Section 5 Township 24N, Range 58E, Section 6

We have leased this acreage twice so far, with the most recent one expiring in April 2017.

The offer is from a broker representing Whiting. It is for a 5-year lease for $400.00 per acre and an 18.75% royalty. I would be happy to provide a Pugh clause and a shut-in gas clause for the lease.

Any feedback on this offer would be greatly appreciated.

Thank you!

2

That sounds like a fairly attractive offer at this time. Montana Department of Natural Resources has a GIS map that will show activity and the quality of that activity.

3

Thanks for your input!

Just wanted to follow up. After some time without hearing from this landman, he got back to me saying that ‘this project has temporarily been put on hold’. So no deal at this time after all.

I will get back in touch if something new develops.