My elderly (but very healthy) mother has a 5nma lease in Reeves County Sec 301 that was originally leased 5 years ago. It was renewed for 2 years in 2017, and they want to extend the lease for another 2 years. To my knowledge, they have not started any drilling yet. I’ve asked if they have any intention of drilling soon, but they will not answer the question.
The last 2 year extension paid $13K, but I’m curious about 2 things: 1) Should she keep renewing the lease and, if so, what is a fair per nma price? 2) Should she decline the renewal and let the lease expire - with the possibility that someone else will offer to lease with the intention of drilling soon. Things to consider: My mom has lived a very humble lifestyle and has never had much in the way of monetary things - current income is $800/mo SSI. This may be her only opportunity for a substantial gain that will see her through the remainder of her life a bit more comfortably.