Lease offer??????

We were offered $4,000 per acre and 25%. I have no idea if this is a good deal or not. Can anyone give us a clue as to whether this is something we should go forward with or not???

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Permalink Reply by The_Baron on August 27, 2009 at 8:21
You are responsible for marketing your own gas.
Permalink Reply by Mac Davis on August 27, 2009 at 7:31
lanadan, once again, you're deliberately misconstruing what I said.

I'll claim:

1) If someone wants to cheat mineral interest owners, there are additional ways to cheat a UMO vs. a leased mineral owner.

2) Some people will try to cheat mineral owners of either kind.

3) A UMO needs to be prepared to prevent UMO-specific fraud in payments.

I NEVER said that going UMO was necessarily a bad idea. You should probably be prepared for more effort on your part as a UMO, but you should also expect to get more money in the long run.
Permalink Reply by The_Baron on August 27, 2009 at 8:23
"but you should also expect to get more money in the long run."

For most HA wells, yes. For other wells...maybe, maybe not.
Permalink Reply by Mac Davis on August 27, 2009 at 9:02
True, but I suspect they're not going to offer you a lease unless they think lease will pay more than UMO. Of course, the big boys guess wrong a lot of the time, too.

It would be interesting to see statistics on whether, on average, leased or UMO pays better.
Permalink Reply by Mac Davis on August 29, 2009 at 5:58
by "lease will pay more than UMO", I obviously meant "pays off for the lessee" better than UMO.

I suspect they're not going to offer you a lease unless they think being leased will pay you less than going UMO. Of course, the big boys guess wrong a lot of the time, too.
Permalink Reply by Professor Fred on August 26, 2009 at 8:02
What company offered the $4k? Please give landman's contact telephone number. Where is your property located?
Thanks for your help.
Permalink Reply by HBP on August 27, 2009 at 11:21
Was this in Texas or closer to Desoto?

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