I'm new to this site and submitted a question several hours ago (see below) without any feedback. Can anyone be of assistance?
We own mineral rights on Section 22-Township 6 North, Range 8 East, Hughes County, OK.
A potential lease agreement says they will pay $250. per acre for 3 yr term bearing 3/16ths royalty. We have no idea if this is a good offer or not. What's the going rate for that area? Can anyone hep?
Thank you. Cindy Harrold
$200 per acre is the going rate…
The bonus amount may be the least important part of the lease, but $200 - 3/16 is what the surrounding areas pooled for.
Rick Howell said:
The bonus amount may be the least important part of the lease, but $200 - 3/16 is what the surrounding areas pooled for.
Cindy Harrold said:
Thank you Rick.. Appreciate your help.
Rick Howell said:The bonus amount may be the least important part of the lease, but $200 - 3/16 is what the surrounding areas pooled for.
Be sure to read all the threads on this forum about the wording in your lease if you aren't going to have an O/G lawyer look it over. There are many small clauses in the leases that can make big differences once/if they start producing. Technology is so much better now, and almost all the wells I've seen drilled around here do get production.
It doesn't seem to be the 'poke and hope' method of drilling of the old days. ;-)