What is a fair offer on a 3 year lease with a 2 year option on 19 NMA in Sec.4-7N-8W in Grady County?

The offer is $1750/ac for 3 years, 3/16 royalty with a 2 year option, , or $1400/ac,1/5 royalty for 3 years with a 2 year option. I am an out of state rookie, who would appreciate all the help he can get, particularly with respect to information re what is going on in our area. Thanks jack


In Section 4, the lessee/operator is most important. I'd grant a 5 year lease to an experienced operator and take the money up front and at least 1/5 with a pro landowner lease adaptable to horizontal drilling provisions and take payment before rendering lease and limit lease to acreage asked for. If you can risk the money, get a CPL evaluation of the net mineral acres but don't be in a rush to lease. The play will get to you eventually.

Gary L Hutchinson


Great advice.

Many thanks, Gary Hutchinson.