Got an Oil, Gas & Mineral Lease offer for my 109 acres, Henry Ashabranner Survey, A-4. $500 per acre for three-year lease with an additional three-year lease. At 3/16ths royalty. It has been surveyed in the past and there is both oil and gas at this location. There is a lot of paperwork in the contract, but this is a good starting point. So where do I go from here? Looks like both offers are low. Thanks.
Recent offers we’ve had are $500 to $650 per acre, 20% RI. We usually don’t consider extensions. If you negotiate for cost free, make sure the royalty is based on gross proceeds, not at the wellhead.
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