Lease Offer CM Hill Survey, A 1121 from Newfield Exploration, What is going rate?

Anyone have any ideas about leasing prices in this area. I was contacted yesterday about leasing for $1,000.00 per acre with 25% royalty. I only have 5 acres in this area. I asked for $2,000.00 per acre and waiting for reply..Any help would be appreciated...Thanks

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Replies to This Discussion

jffreel, Thanks for the info and the map I appreciate your input.
You're welcome.
Ron, NFX has paid at least $1,500 in that area recently. This is what I can confirm. Don't know if they will pay 2K though.
Thanks Carter, I settled for $1,500.
Ron--if you are battling between 1000 and 2000 the most important is make sure the lease has all the good terms you want like 25% r , vertical and horizontal pugh clauses, pooling clause, and free royalty gas, etc to name a few--If you are new to leasing get a good oil & gas attorney to write the lease for you rather than the company writing the terms of lease. Yes you both then have to agree to terms. There are lots of post on this site about what terms make good lease for mineral owner you can review--look up on search of site
Newfield is partners with Petrohawk (Petrohawk holds a nonop. position after buying out other nonoperated positions in the acreage) in this area and acreage--another blog posted recently said Petrohawk had made an offer of $1000/acre and 25% royalty in the Patroon area and rejected a counter offer by mineral owner

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