Should I lease or should I sell?

How much is a reasonable amount of money that you can make on a lease with an 18% royalty. per acre, per day.  I know it's a hard thing to estimate depending on the market price, but let's say worse case and best case scenarios.  


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That is a hard one to answer. Need some more information. 

What State, County and Township/District are you located in? 


Thanks for the response.

Ohio, Harrison County, Green Township,

Lease it first, collect a good bonus, $7000 to $8000 a net mineral ac, get a good lease with 18 to 19% gross, Pugh, better Shut in, Warranty of title and Hold Harmless. After you get youbonus money, then shop it around to sell IF the operator isn't going to drill in a 4 to 5 year time frame.

They offered 500 an acre, 15% royalty I got them upto 1,000 an acre, 18% royalty.

I have had offers to purchase at $7,500 an acre.

I sent you a friend request. I can send you a message once we're connected.

What is pugh, better Shut in, Warranty of title and Hold?

There used to be sample leases on line. Might try auditors site for lease wording.  Was told some we’re getting around 2000 but think 15%.  You can look terms up online for an explanation.  The biggest thing I see talked about is no deductions.  See if Dott has any info on current leases she could share.
  We have an older lease from 10 years ago that was not renewed. Back then they were all about how good market enhancements were.  That turned out to be a way for the company  to take massive deductions.  It is probably worth your while if they are talking to you to get a lawyer to help. What you spend now will pay back big time in the future.  They must be planning on drilling soon in your area.  They didn’t even want to talk to us.  Good luck. 


When was the last time you contacted EAP to see if they were interested in leasing you? Has it been in the last 12 months?

Hi Dot,

Is EAP Encino?  

EAP is a partner to Encino. Encino runs their books and business side etc. But EAP is a separate company. I think EAP got your lease from Chesapeake a few years ago and did not renew it but things have changed recently and they are drilling around your area with new leases. If you contacted Encino and they were not interested you may want to contact EAP. Again I have the Landman's info if you want it.

Hi Dot,

Thanks, yes please give me that information.



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