I am being approached by Chesapeak to lease In this section - they are only offering $900/ acre and 19% I think this is pretty low. Am I having too much expectation?
You're welcome Bill. Pardon the rant. LOL!
Ben, I think you misunderstood. Although any royalty percentage is a possibility, I've never heard of 19%. There are a number of common royalty fractions traditionally used in O&G leases. The one that I think he was referring to is three-sixteenths which is 18.75%.
I recently leased a 3 acre tract in 15n 14w sec 29 for $2000 acre and 22.5% cost free royalty. I am satisfied with that but have heard of higher amount being discussed on a larger over 30 acre tract. Although previously leased many folks in this section were able to lease again due to lack of production and no shut in payments.
Congrats, Ronny. Those are very good terms. So unlike Chesapeake especially for a section that was fully developed for the Haynesville a couple of years ago.