Bottom line per acre

Oil and Gas Leasing Help
1

Eddy Ct San Jose Subdivision. Permian is on the move again. We own mineral rights only on 3 lots equalling 1 ac. They are offering $750 for 5 year lease and 3/16 shared royalties. Does anyone have an idea what that means at the end of this?

2

Hi

That seems very low to me. Assuming I am looking at the right stuff, that is somewhere West of 285 around the cemetery?

5 years is too long. 25% royalty. Bonus should be $2-4k IMO. On an acre it doesn’t matter all THAT much, but I’d at a min go for a 3 year lease and 25% royalty.

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