Just got an offer to lease in this section. $600 per NMA for 1/8th royalty, $500 for 3/16th, and $400 for 1/5th (3 year term)… Is this reasonable?
Fourpoint just pooled section 24 for $800 1/8th, $700 3/16ths, $600 1/5th as of January 22, 2019. It is not contiguous with your section, but gives you a feel that there may be some room to go up. The clauses in the lease are more important than the bonus amounts. The lease will likely need negotiation. Inceased density filings are all around you, so getting the lease right the first time impacts future wells.
Appreciate the feedback! Thanks
Never hurts to ask for a higher bonus. The worst that can happen is they say no.