I’ve been approached by Kraken Oil offering a lease on our minerals in Richland Co. The offer, of course is a far cry from what we got in 2014…3 years/20%/$1800 per acre bonus. Now that oil has made the big drop and seems poised to rise again, I am hesitant to re-lease as our area was extremely active, with producing wells in adjacent sections pretty much in any direction. The current offer, 5 years/18%/$350 per acre does not seem worthwhile to me, as I believe that this plot will be drilled in the next couple of years. IF we do not lease, and a producing well is drilled, I am assuming we would be “force pooled” into the production unit, and would receive not 18-20% of our interest, but 100%. Am I correct in this??
Advise from those in the know would be appreciated!