our lease offer was $1,000 acre, from EOG, and cost of well was $5,371 per acre.
What you should also do is... find out what the wells are producing in and around that area. Google "ESER.org"
Hess isn't Carl's Wells and Bait shop...Hess knows what they are doing. Of course make sure it is a horizontal well but I would be shocked if it wasn't. The total cost of the well should be at least in the ballpark, of around
Once again it all comes down to how many acres you have, that you will be responsible for.
let me be a little clearer about something, here are your choices.
1) take lease
2) reject lease and participate
3) reject lease, reject participation
4) do nothing, ignore everything. (same result as #3)
...unless you are rich and or have an extremely high tolerance for risk...I would avoid #2. (dry hole, you pay your share, if you had 10acres that would be $80,000 you owe.)
Do nothing, you pay nothing out of your pocket, you collect a royalty from the day it produces ( meaning that as soon as your royalty equals $100 or more and the payments are always for the previous month(s)) and when you paid off the 150% penalty, you collect your full share. Your taxes will be a bit more complicated to do, and you hope nobody has cause to sue your well for the next 20 to 30 years.
...take the lease and you are off the hook for everything, except taxes of course.