Lease offer Ward County

Ok I have a question. If company makes offer to lease minerals and they are the ones going to drill, yet another makes offer with much larger bonus who should you lease with? Does it make a difference if you take larger bonus offer or should you sign with the one actually drilling?

It doesn’t matter to me. I take the best clauses (which may not be the highest bonus) and highest royalty. All the leases must be followed.

If the company you say is “going to drill” already has a dominate acreage position in your area, and the company making the higher bonus offer has no track record and may just be speculating they can end up assigning your lease to the “driller” for a profit, I wouldn’t base the decision on the bonus or royalty being offered.

That said, you also need to be cautious about putting a lot of stock in things landmen say about their client’s plans when they are trying to get a lease signed.

You didn’t mention the size mineral interest you own. If it’s large enough to support a drilling unit, probably a section if it’s a horizontal well, that puts you in a different situation than someone whose only prospect of sharing in production is being included in a large pooled or allocation unit.

Before going with either of those offers try contacting other mineral owners in your area to see if they are willing to share information and might be interested in negotiating jointly.

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