I inherited a few acres in Section 36 15N 26W. Received a lease offer of $1750 per acra bonus (18.75%) 3 yr primary term with a 2 yr option to extent at 125 percent. Also $1,500 per acre with 1/5 royalty with the same 2 yr option. Does this option restrict me and is this a good offer?
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Welcome to the forum.
Most of us would prefer the highest royalty and no option to extend as it restricts your options for those two years. It would be very wise to get an oil and gas attorney to look at any draft lease as they are not in the mineral owner’s favor and need significant edits. If hiring an attorney is not feasible, then you can wait for force pooling as a good alternative. It has its own benefits.
Several companies are leasing in that section, so you might get a higher offer closer to drilling. Most likely for Cherokee horizontal wells in the future.
Suggest that you read through the Roger Mills threads to get a feel for what is going on there.