Oil Leasing

So what happens if you do not sign a lease, or the AFE from the leasing company? Is this bad, will you lose money?


If you don't sign a lease, and a well is drilled in your unit, you will be a paticipant in the well. Is this bad or good depends on how good of well it turns out to be. The only money you stand to lose is the lease bonus money but eventually your royalty would be 100% based on your NMA's. This is a decision that is strickly up to you. You might want to google the "pros and cons of signing a lease" and get some additional information about this matter.