Been offered $200/acre and 3/16th royalty. Location is Section 2, T-06 North, R-16 East. Pittsburgh County, OK. Does anyone know if this is a fair price?
Seems awfully low. It's probably only rights for 3 years anyway, right? It is an offer to lease the rights correct? Or is it an offer to buy? I would think hard about selling the mineral rights outright for that.
Robert, thank you for your response. Yes, this is an offer for oil and gas lease. It is for 3 years with an additional 2 year option. It seems low to me. Any tips on how to negotiate? Is there a risk of losing the current offer and winding up with no offer???
I know almost nothing. What I do know is still a long story, for me to type out. I leased .83 acres, that is point 83, that subsequently had two gas producing wells in Pittsburgh County that have grossed me maybe $2000. I forget what I got per acre for the lease. I have been waiting for the wells to close but every once in awhile I get a check. That's all I know.
Unless you have a lot of acreage there is no negotiating, probably.
This all has to do with scale, Do you have less than one acre, or 400? If it is hundreds of acres, get an expert. How one get's an expert I don't know.
Don't you ever get offers to buy the rights?
From this website, I have learned a lot about leasing and what clauses/provisions/wording to include in a lease. One thing that is regularly recommended is not to be in a hurry to sign. First, go to the top of the page--Members--and reach out to some professionals for help. I have also used the Search to find examples of lease language.
Thank you Robert and Robin so much!
not a good offer call me 918 916 3995
That is low, especially with current activity here. If you want someone to look at it, let me know.
3 year with 2 year re-up 3/16 Depth clause and post drilling clause needed, but that number is too low.
Not a good offer. Call anyone with more than just a comment research them on LinkedIn, AAPL, or call me and I’ll refer you. But don’t be in a rush and don’t settle. And never sell unless absolutely needed.
I have been contacted to sell all or a portion of some mineral rights. I did not know I was part of an estate…I have located an old lease from '96-thru '99, it is approximately 50 acres… I have the location and would like to find out more…
The offer initially is $5,000 per net mineral if leased at 3/16 royalty
Thanks for any help, Scott