Lease/royalty value Sec 34 Twp 11 Rng 58

Any info. on current lease prices and companies interested will be appreciated. Currently leased to Whiting & they want to renew; 250 bonus & 3/16 royalty. Have 40 net m.a. + brother & sister each have the same. Located west of Herford & NW of Grover. It is S & W of Whiting's "Redtail" field. Hope this is enough info. and appreciate any ideas. Thanks!

The TERM of the new lease would be the key. For a low bonus like that, one, maximum two years should be the Term of the lease.

Whiting is short of drilling money, has interest elsewhere, so Niobrara is not high on its list at current oil prices. Whiting is "sitting" on an awful lot of pending and planned well locations just south of you at Razor, so they are not apt to get up to your acreage anytime soon.


Thanks, John. It is for a 3 yr. lease, option to renew for another 2 @ same $. I am also a little worried that Whiting may not make it through the next few months/year if prices don't improve & steady. Your comments are sort of what I expected and are appreciated. You are a busy man and have good information for a lot of us that "dabble" so thanks again.


Nearly everything Whiting has is for sale and the federal leases in your section don't expire until 2021. Your acreage will sweeten the pot for Whiting if they can make a sale to another operator. I could find no permit applications in your section.

Consider a counter offer of $500 for a 5 year paid up lease and delete the clauses the give the lessee first right of refusal. You might get it if they are close to selling their field for lots of money. If Whiting doesn't make it, you won't have to worry about collecting on a promise later.

Gary L Hutchinson

Minerals Managment

Thanks, Gary, appreciate this information as had no idea. Financial analyst reports are not real optimistic so a concern about getting my money. I will follow your suggestion. $500/5 3/16 royalty is the lease we now have with them and just needed some incentive or reason to negotiate. You and John G. have helped a lot of rookies, so thanks very much.