Currently have an offer of $5000/25%/3yr for 16-16-26 from CHK. Would appreciate any comments.

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Section 26 is under HA unit order to Chesapeake. The offer is not bad for a relatively small mineral tract that does not have a value for surface use. There is no way to judge the offer without knowing the specifics of your tract.
The closest completion to your section is in section 24, with an IP of 13,700 mcfe/day on a 22/64 choke. Not a hall-of-fame well, but still pretty darn good.
I also just ran across reports on Secs 34 and 35 of 16-16. Both were good wells. Both had IPs around 10 mmcfe/day, on 20/64 and 22/64 chokes, and about 6500 # pressure. Your area is capable of producing good wells.
I, personally, would want more than $5k/acre to lease in this area. But you should hear what others recommend.
Henry, these are good wells, but not great wells. All of Chesapeake's sections in 16/16 will probably be drilled within a year, at most 18 months. 16/16 is a very average Haynesville township, certainly not above average!
I would want an 18 month lease, not three years. They will need to drill sooner rather than later in that case.
IF THIS IS THE FIRST OFFER IT IS THE LOWEST. YOU CAN GET A MUCH BETTER PRICE. MAKE SURE YOU ADD A PUGH DEPTH CLAUSE, SHUT IN ROYALITY,COST, NO SURFACE RIGHTS, NO PRODUCTION AFTER 3YEARS RELEASE THE LEASE IN WRITING.
I, too, would like to know more about your tract. How many acres? My intial thoughts are...push that price up a bit but, again, how many acres??

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