Should we get better terms for rights very close to existing producing wells compared to rights not close to producing wells?

We also got the lowball offer (550, 25 year lease) on some rights in T14s, R37e, and a bit in T15s, which we turned down.

We consider this our most valuable rights because they are very close to (surrounding) an active producing patch of wells.

Are we correct in assuming this? With the prices being given in outer areas, is proximity still a big factor in pricing? Again, it is a great help to us in negotiating to have dollar ranges of what we should get for “next door to producing” rights vs the further-out rights mentioned in my previous thread.

I so appreciate everyone on this forum for being willing to share such useful information and advice to help us make smarter decisions.

I would never consider any lease of 25 years??? Never seen one that long in fact. Three years max.

What kind of royalty did they offer? I would want at least 3/16th and NO POST PRODUCTION EXPENSES.

The bonus is just that. I don't weight an offer on the basis of the bonus. The bonus will look like peanuts if the well is good.

Yes, we’re now aware that we shouldn’t accept any more than 5 years, we three preferred.

Thanks for the tip on no post production expenses. We’ll watch for that in the contract.

Since no one is offering ideas, what about this…

If we counter, on the rights further from current production (T13s, R37e), with a three-year contract, 1/4 royalty, and a bonus somewhere in the ■■■■■■■■ pnma, is that

Still too low

Too high

In the ballpark