Vertical or Horizontal?

I’m sure you realize, but letting anything a landman tells you influence your decision can be a big mistake. If these folks will include a firm “drilling commitment” in the lease then…assuming you know who these landmen are representing…you can decide which company has the track record that indicates they can follow through with what they are offering. Drilling commitments are hard to come by so negotiating the shortest possible lease term may be the best alternative. Keep in mind also that horizontal wells typically produce more than vertical but a lot of other variables can come into play. The size unit that’s formed (horizontals typically having much larger units than verticals) and the number of your acres that get included in the unit could offset the difference between a horizontal and a vertical well.