Dear Ms. Hamilton,
Without seeing the entire agreement, I can only take a wild guess.
I might guess that they want to lease 1/4 of the acreage at $400 per acre and option the balance at $100 per acre. If they exercise, I would only guess that the strike price is $400 per acre.
I am very familiar with this area. Is this Samson or Fairways? I have a guess, but will not state it here.
With your acreage position, you should be able to negotiate a minimum required selection, such as at least 30%. Also, if they are wanting to conduct seismic, you would want liquidated damages if the seismic is not performed. Also, you would want a professional lease form with your acreage position.
The target is deep yegua and the wells in Jefferson have been fabulous. Bona fide barn burners.