Current Lease rates in Section 362, Yoakum County TX

Texas Mineral Rights Yoakum County, TX
1

Does anyone know the current lease rates for the W/2 of Section 362, Yoakum County TX?

2

We leased Section 500 for $400/ac, 1/4, strictly no deductions, with strong depth clause, shut-in and commencement clauses.

Christine

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3

Thank you Christine.

4

Depending on the number of mineral acres you own somewhere between $400 - $600 per net mineral acre with 22.5 to 25% royalty.

5

I have an offer for $200/acre for Section 500. I have not responded to the offer. Is $400/acre closer to market? any drilling activity in this area? any lateral plays?

thanks –

Lee

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6

We recently signed a 24 month extension in Sec 500 for $400/acre and 1/4 with no deductions, if that helps.

Christine

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7

Thank you Christine.

8

$750 per acre is what i would ask for

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9

Everything is negotiable.

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10

We are brand new to this site and trying to understand more about how these leases and the terms work. Are they paid out annually? For instance if you have 25 acres, do you multiply the acreage rights by let’s say $400 and then multiply that by 3 for a 3 year lease? Sorry if this is a silly question, but apparently there are operating wells on the inherited rights, and we received paperwork for an “exploratory” from a royalty company but there are no terms, no royalty explanation, etc. because it was all being done before we gained ownership… Thanks for any advice!

11

Our interest is about 2 miles from your section. It appears $400-$500 / 3yr/ 1/4th seems to be the going rate. Lease clauses are negotiable to a point. Try to get the best no cost clause, no warranty, depth, shut in et al. Negotiations are ongoing at this time.