I have received a letter from Native Exploration LLC to either participate (I’m not interested) or the choice of two lease options for mineral rights in the area they plan to drill
Their description is the drilling of the Sacred Sun 5-32-0603 1WXH, a multiunit horizontal well to test the Mississipian, Woodford and/or Hunton sources of supply. It is to have a vertical depth of 9740 ft and a total measured depth of 20,940 ft, Dry hole cost $2,428,465, completed well cost of $8,374,711
The surface hole will be finalized at a later date. The proposed completion interval will be at an approx location no closer than 150 ft from the south line and no closer than 330 ft from the east or west of Section 05-6N-03W and no closer than 150 ft from the north line and 330 ft from the east or west line of Section 32-07N-03W. The interim allocator factor will be based on 50% of the perforated lateral lying in Section 05 and 50% lying in Section 32
I honestly have no idea how many net acres I have rights to as this has been passed on to me.
They propose the following 1 Lease your interest to Native for a bonus consideration of $2000 per acre with 3/16th royalty, delivering to Native 81.25 % net revenue interest 2 (same as above) but $1000 per acre and 1/5 royalty
My questions are
1 Are these fair proposals for what is currently being offered?
2 How do I find out how much net acres I might own in this area?