Decision Scenarios
Release vs Renew vs Acquire analysis for expiring leases
3 decisions pending
Lease Expires
September 30, 2026
249 days remaining
Lease Compliance
85%
Monthly Royalty
$125,000
per month
Royalty Gap
$95,000
of $890,000 balance
Scenario Comparison
Release Acreage
Release mineral rights at lease end
Total Cost$450,000
Low Risk
Well production declining, clean exit possible
Pros
- + Exit lease obligation
- + Avoid future environmental costs
Cons
- - $450K plugging & abandonment cost
- - Lose any future upside
Recommended
Renew 12 Months
Negotiate 12-month lease extension with current terms
Total Cost$1,500,000
Monthly$125,000
Duration12 months
Low Risk
Established production, good operator relationship
Pros
- + Maintain production revenue
- + Time to evaluate market
Cons
- - Continued royalty payments
- - Maintenance obligations continue
LeaseOps Recommendation
82% confidenceBased on current production levels and favorable operator relationship, a 12-month renewal provides flexibility while the Permian market stabilizes. This allows time to evaluate recompletion opportunities.