Being fairly new to this, I am wondering what is going on in Stephens County regarding the area around E/2 SE/4 and E/2 W/2 SE/4..both in Section 14, Township 3S, Range 4W. I have been receiving some lease proposals and my curiosity is keen. In the past the dollar amounts were not close to these offers. Does anyone have have information? Is so, I will I greatly appreciate your input. Thank you for your time!
Find out if the people leasing are going to drill the well.
Find out if the Lease offer they are making you is their highest lease offer.
Ask for more than they have offered.
Make sure you are getting a gross proceeds lease with no deductions.
Make sure there is a depth clause releasing all formations not drilled during the primary term.
And many more other terms.
Talk to an attorney before signing any lease.
This information is soooo helpful. I greatly appreciate your help.
Matthew said:
Find out if the people leasing are going to drill the well.
Find out if the Lease offer they are making you is their highest lease offer.
Ask for more than they have offered.
Make sure you are getting a gross proceeds lease with no deductions.
Make sure there is a depth clause releasing all formations not drilled during the primary term.
And many more other terms.
Talk to an attorney before signing any lease.
Matthew,
Would it be correct to assume that leasing to the folks who are going to drill is the best way to go?
Yes, because they have a higher incentive to pay you more bonus for your lease or give you a higher royalty.
What are the offer(s), if you don't mind? This is a public forum and some people may own minerals near yours and need to know the going rate.
Matthew,
The best offer thus far is 600.00 an acre. I actually do not know if this is the "going rate" but would love to hear from anyone with suggestions. I appreciate your interest.
What kind of raoyalty goes with that. It matters. 600 with a 3/16 or 600 with an 1/8th.
Royalty and Bonus slide inversely. More bonus, less royalty and more royalty less bonus.
Risk reward. Money now or money (maybe) later.
600.00 with 3/16th