We have some minerals which are currently leased and the lease expiration date is approximately one year away. My question is what is the average time before a lease expires before an offer to top lease will occur? These minerals are located in active areas of both Montana and North Dakota.
Dear Mr. Mallory,
In my experience, generally not longer than a couple of months before the lease is due to expire, UNLESS the top lease is being used as a land strategy tool in order to gain control of a prospect. If that is the case, it could be done years in advance.
Buddy:
Thanks for the info. These minerals were leased in 2004 and top leasing occured in 2008 on several areas of the original lease. I believe the top leasing was approx. two months before the original lease expired.
Buddy Cotten said:
Dear Mr. Mallory,
In my experience, generally not longer than a couple of months before the lease is due to expire, UNLESS the top lease is being used as a land strategy tool in order to gain control of a prospect. If that is the case, it could be done years in advance.
Best,
Buddy Cotten