We have gotten two different lease requests for Sec. 20 5N 6W. We've gotten notice that one of these has a pooling hearing scheduled. My question is, how do you know when you've gotten the final/best offer from companies and what experience do you all have with pooling. Would we be ahead to pick a lease option or let it go to pooling?
It is hard to tell when you have the best offer from a company unless you have contacts within the same sections who are receiving offers. However, in my experience, once a pooling order has been filed. Companies will normally become more aggressive in their offers since they know their time is running short. Feel free to message me if you would like to discuss this further.
I received a pooling letter in this area as well. By Echo Operating.
Once you have a pooling letter, it will probably list the offers that will be at the official pooling. I
Signed a lease today for Sec 20 5N 6W, 3 year, $4000.00/acre, 1/4 royalty.
Charlie, those sound like good terms to me. Just wondering what company you signed with? We were offered 4000 an acre to lease in 9 7W 7N, but the royalty percent wasn’t as good. So I’d like to be able to say what one company is willing to sign for! Although I realize every section is different.
Pooling allows only the pooled zone to be held. Everything above can be renegotiated.