Received an offer of 3/16 and $1,000 per acre. Does this sound reasonable for this location?
I cannot comment on the value, but when I get an offer, I always ask what the 1/5th and 1/4 options are. A higher royalty is usually better in the long run if there is production. If this is your first lease, it is wise to get legal help as the first draft lease is probably not in your favor and you will need help in negotiations. Never sign and hand over a lease without getting paid at the same time.
Sec 4-6N-8W we have a lease offer from Alvarado 2014 LLC out of Houston
Has anyone dealt with this operator before-if so whats your opinion of them
Lease terms $600-1/8th $500-3/16th and $350 for 1/5th any thoughts on that pricing I notice that Todco is leasing same T/R and just wondering if anyone on here has leased to Todco in Sec 1 or 12-6N-8W and what the prices paid were its good to see activity again in the area Thanks
Alvarado has filed for a Horizontal well in the NW4 & S2 of 4-6N-8W and All of section 9 case 202200877. There is also a case to set an irregular 480 acre spacing in section 4. Case 202200657. Case 202200658 to change the operator from Ward Petroleum to Alvarado. There will probably be a pooling closer to drilling, so you can lease or wait for pooling.
The nearest pooling was by Alvarado in sec 26 back in April 2021, so a bit far away but useful for info. Hoxbar at $600 1/8th, $500 3/16, $150 1/5th. Todco filed leases in 6 & 12 recently at 1/5th. Bonus amounts are not public.
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