I recently received a letter offering to lease my interest in this land. I’m a novice and was hoping to get some advice from the forum. Option 1: $2,000/acre, 3/16 for 3 years; option 2: $1,750/acre, 1/5 for 3 years; and option 3: $500/acre, 1/4 for 3 years.
I would appreciate your input.
EOG pooled sec 5 for $2750 3/16, $2500 1/5, $250 1/4 Feb 2018 Citizen Energy pooled sec 18 for $1500 3/16, $1125 1/5, $0 1/4 Feb 2018
That gives you a nearby range. That being said, I always ask what their highest offer will be. I have dealt with Black Fish quite a few times and my landman there has been exceptional. Might take a bit of negotiation, but he is quite good.
We signed $650 3/16 Section 17. How do you find out pooling rate?
You can look them up on the OCC website. It is a bit sluggish. I have a subscription I use which is faster.
Somewhere deep in here are the instructions for the OCC and how to find the cases by sec-township and range.
http://www.occeweb.com/Orawebapps/OCCOraWebAppsone.html
Thank you very much for the information. I’ll keep you posted.