Just got a lease offer for interests in Sec 147 at $75/acre, 3yrs, 20% from Omni Petroleum. Anyone know them or what's going on? They say they're planning to drill not flip. Bonus seems low but I haven't found any sign of activity there on the internet, so maybe it isn't. (I've also recently set up a "group" for Stonewall County if anyone's interested.)
I really wouldn't pay much attention to the statements made by an operator in regards to their plans to drill. These operators are noted for trading and selling their lease holdings. If I were you, I would just be concerned about the bonus/acre and especially the % royalty along with the lease length. Looks like the 3 years and the 20% royalty is good but I agree that the lease bonus is on the low side. I am not familiar with this area and my question would be how close is the nearest production and what amount of production is the well producing. It is typical in areas of risk that the bonuses are on the low side but in your case, I think the other parts of the lease are fair.
Thanks Charles. I value your expertise.