What is the signing bonus and royalty percentage (without deduction) in leases being signed now a days?
I have kept up with what has been going on with Oil and Gas in General, anyone is lucky to get leased at all. I also realize that it depends on the area, but if anyone has any input in general I would appreciate it.
The area in question is Southeastern Tuscarawas County so anywhere nearby including neighboring PA would be helpful.
Latest I have seen is 2,000 to 2,500 an acre for 3 year lease and 16% royalty with the right clause for no deductions (very important to get the correct language) This was for Harrison county both Cadiz and Stock township....Also it seems that nobody is leasing unless they have drill schedule which is why they are only offering 2-3 year leases.............Hope this helps
Thanks Frank it does help it tells me that some companies are still trying to Low Ball. What do you mean "unless they have drill schedule"? Is it that they are pinpointing where they want to drill, signing them up and drilling almost immediately?
Companies are no longer leasing to lock in land. From what I am seeing in our area the only leases they are interested in is what they need to finish out a unit that they plan on drilling in the next 24 months, with that most of them are proposing a 2 or 3 year lease on needed land while threatening to force pool if you don't sign....With the short lease term they are in the fair market value range of $$ per acre per year
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Thank you Everyone