Gulf exploration proposes to drill a horizontal well at Section 32,18,4 and is offering a lease of $700 for 1/8 th delivering an 87.5% net revenue interest. Or option 2: $650/1/8 th @ 81.25% interest Or option 3: $600//1/5 th @ 80 % interest Or option to share in the well costs 3 year term only
I don’t understand the net revenue interest. Could someone explain that in more detail. It sounds like if I pick a higher interest I’m getting that on a lower revenue interest. Is this a good offer or should I wait for pooling? Does anyone know if there have been any other new wells close by. Besides the minerals rights I own part of this land that they want to drill on. Does that mean anything else for me.that I need to be aware of?