Top Lease?

With expiring leases coming up for folks, thought I'd throw this out there. What would a decent top lease offer look like? In the last few days there was a landman offering $5K an acre with $50 an acre upfront (14/11). He got less interested when he found out they were drilling the section he was asking about.

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Permalink Reply by Dion Warr, CPL on July 27, 2009 at 8:45
Bacon:

I usually don't inject actual numbers into this type of discussion (they might take away my landman card), but top leases typically pay around 20-30% of the bonus payment upfront, maybe 10-15% on the low end (or in this realm of bonus payment e.g., thousands of dollars per mineral acre).

You are talking about 1% of the bonus paid upfront. That is a cheap fishing expedition in anyone's book.

Good luck.
Permalink Reply by Bacon on July 27, 2009 at 8:48
Ahh, Thanks, great info.

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