Update three and I’m sorry to keep posting: I’m I misunderstood the held-by-production thing because I can’t find a Chevron well within dozens of miles of us. All sounds like phony baloney so we told the bank no.
Update two: OK, more info. We are told that the reason the offer is low is because Chevron owns the other half of our acreage (SIL owns other quarter) and Chevron holds minerals above 14,000 feet by production on an extensive pool that includes our section. (There are no wells on our section.) Of course, the acres we own are not held but whoever leases will have to deal with Chevron and may be only able to work lower than 14,000 feet. Does this all make sense? BTW, our holdings are 1/4 of 524 acres. (SIL the same.)
Original post:We have an offer at $1500 an acre, three years, 25%. Considering that Apache sank a test well in the section directly to the NE of us - and then in May spudded a new oil/gas well there - $1500 seems a bit low to me. We are held in trust and a bank is doing the negotiating but they do listen to us. So if we should hold out, I’d sure like to know.
There have been some decent oil wells come in a few miles to the east and NE of us.