I received an offer of $175 for 1/8, $150 for 3/16 or no bonus for 1/5. This is for a horizontal well to 10,000' and vertical depth of 4,750. It also offers participation in the well which I am not interested in. Does anyone else know of any lease activity in this area? I also don't remember the type of well being mention in the offer before. Any information there?

They are currently drilling a horizontal well on my property in Lincoln County. It is very active in Lincoln County at this time...a small amount of oil...mostly liquid gas and natural gas.


The terms of the lease can be as important as the bonus.

Holly, I would think you could do better because their numbers are skewed. 1/7th less cash but 50% more royalty with the 3/16 deal over the 1/8 deal, I would say they are trying to herd you to the 3/16/$150 deal.

Holly, in your position I would wait, I think it's quite likely you would do better making a pooling election than the deal offered so far.

This helps a lot. Thank you.

I have not seen a 1/5 royalty offer on other parcels – 3/16 is the highest. Have others seen that type of offer ?

I have seen it in pooling orders in the area as an election. And also in leases in the County records.

I was given a 1/5 royalty but had to give up the option money up front.