We recently received an offer of $750. 1/18 3yr lease from Kraken, is this a good deal?
Thanks, Jim
Jim:
Do you mean 1/8, instead of 1/18?
Our latest lease (in Mississippi) they have gone from 1/8 (12.5%) to 3/16 (18.75%).
About 4 years ago we only got $200 an acre for a three-year lease with XTO for Richland Township 22N, Range 60E, Section 5, SW 1/4 (160 Acres). I believe that that was a 1/8th lease. We are currently looking for a company that is interested in our property.
So based upon my numbers, if your number is 1/8 and not 1/18, then I would think it sounds like a fair offer in my opinion.
Jim, also see Mark Presley’s posts from a few months ago. Some of the replies indicated that in some areas the offers are even higher.
Whoops! I meant 18%.
Bob is correct, we were given $1800/acre and 20% on a 3 year lease in Section 11 & 12 of Township 24N Range 58E 3 months ago.
Based on my tracking, in addition to recent drilling permits pulled by Whiting, and Emerald, I believe development is just around the corner here. Unless you really need the lease $, I would be tempted to wait to see if your interests are drilled on, thus getting you force pooled into the spacing unit, and getting 100% of the royalties instead of only 20%!