I was approached by Rock Creek Land & Energy to lease Sec 25-08N-04W McClain Co. Terms are $4K, 3-year w/ 3/16th or $3K, 3-year w/ 1/5th, plus 2-year options on either offer. I don’t do options, however. The operator is Native Exploration. Would like to know if these are good offers or if I should wait. I had a lower offer on this property, by $1K, in late February and held out.
lways hard know when the top price will be. I ask for the 1/4th as well. Sometimes they do it, sometimes they do not. The clauses on the lease are far more important than the bonus, so you will probably have to negotiate to get what protects you such as NO post production costs (none!), depth clause, restrict shut in time, no warranty, no option, no top lease clause, etc.
Meredith-It is not likely that your executing a lease to a particular lessee will mean that company will be the operator.
It can happen if there is a fight for operations and your acreage is enough to give that operator the most acreage in the unit–but that circumstance is not really all that common. So, Native still might become the operator even if you lease to some other company.