I just received an offer to renew a current lease, the location is T149N, R 103, Sec 32 SE1/4,S1/2NE1/4 and Sec 33 SW1/4NW1/4, NW1/4SW1/4. The lease is currently with Kodiak which expires in March 2013. This is thru Diamond Resources and their offer is: 750.00 per acre 17% royalty for 3 years, with Pugh clause.The net acre is 16.
What has been the going offers in this area and does it seam reasonable. I have acreage in Richland County MT, some were leased though Diamond and it was a little unsettling
Penn, I didn't see anything really close to your legal descriptions. The wells nearest by KOG and Slawson look marginal at best. If you are sure you have exhausted negotiations, I would say to take the money and run. If more wells are drilled that look like the two closest wells they are going to stop drilling. Make sure you get cash, cashiers check and not a draft before you hand over an executed lease. I'm usually more optimistic, but I'm just not seeing it in your area.
FYI follow up on the Kodiak lease we settled for 1000.00 per acre so something is going on in this area