I signed 2 leases in 2016 which expired this year. One I re-leased, and the other was held by production, I thought. The well was spud a couple of days before the lease expires, in June. Yesterday, I got a call from a landman, representing the oil company who spud the well, wanting me to sign a new lease with a effective date of June 19, 2019, the day before my original lease expired. On the RRC site, I found 3 wells permitted, on 8/19/2019. The original lease had a problem letter that I could not get the link to work for, and has been amended.
The new offer is 25% royalty, 3 years, $1,100 bonus per NMA, of which I have 3.3074. The API numbers are 31742171, 31742512, and 317425 13. The amendment is for a stacked lateral parent well, depth 10605, Sprayberry, T&P RR, 35 T1S 14. Total acreage is 747.91.
Is this one of those situations where I could stay unleased and get 100% after costs are met? Or should I ask for a higher bonus and negotiate the terms of the lease?
Thanks in advance to the MRF gurus. Camille