I’ve been given three options for a small (0.63 nma) lease.
3 year lease term, with a 2 year option, or a straight 3 year lease.
Option 1- $752/acre bonus with 1/8 royalty (12.5%)
Option 2- $502/acre bonus with 3/16 royalty (18.75%)
Option 3- $402/acre bonus with 1/5 royalty (20.00%)
I’m considering a counteroffer of $800/NMA and 20% royalty. Is this reasonable?
Thanks!