I have 80 acres on this plot and am receiving an offer from turner and gas so they can drill. Th offer is 350/per acre + 3/16 of the royalties if they strike oil. Is that a good deal?
North half of north west corner N/2 NW/4 Of section 23, Township 19 N, Range 12 W
Companies generally start out with the 3/16ths offer, but I always ask for what they are offering for 1/5th and 1/4 as the royalty is more important to me than the bonus amount.
Are you sure you have 80 acres or a proportional interest in 80 acres. 80 acres would be rare after this many generations have passed since original patents.
I always ask: Who will be the operator? What kind of well will they be drilling? What reservoir will be the target? When do they expect to permit and drill?
I often wait for the forced pooling if I cannot negotiate the lease to a more mineral owner friendly version. The original draft lease will be all in the operator’s favor and will need some work.
This topic was automatically closed after 90 days. New replies are no longer allowed.