I’ve been contacted by a company wanting to lease my mineral rights. They haven’t been leased for 5 years. Twice before then, they were leased for $325 a mineral acre. I’m just wondering with the current oil prices what the going rate to lease is now. Any help would be appreciated.
In many areas, lease prices are down since oil prices are down, but gas areas may be more stable. You would need to give a section, township and range to get a better answer.
Our minerals were leased years ago and I have not a clue what the going rates would be now. In the current situation where oil prices have been down so low and are just meandering upward, but still below a level that is profitable for the producer I wouldn’t expect much.
Thanks for your thoughts. I was thinking the same.
With oil prices steady at ~$40/bbl, the market is not far from its 50 year average spot price. M_Barnes is absolutely correct - the area (Section, Township and Range) has greater implication on what your lease offer is rather than the price of oil today. Nearby production could behoove you to negotiate better terms (i.e. 3 year primary term + 2 year extension option instead of 5 year primary term) or a higher lease bonus.
Depends if just east of I25 starting at the county line and going all the way up to 2-3 miles north of Greeley, and West of range 62W, you still should be able to catch $500-1,000/acre without permits. If you’ve got an active permit on your land in that area and haven’t been force pooled you should be able to get between $1,000-2,000/acre.
If you’re up in the Oil Extension, or on the eastern fairway then prices are going to be around what you got quoted and as low as $100/acre in some instances.
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