Ector County Lease Offer

Texas Mineral Rights Ector County, TX
1

Location: Sec 16, Block 42, Township 2 South, Ector Co TX, Orchard Tract 1

We received an offer from Venture Royalty Partners out of Ft. Worth offering $1,500/Acre lease bonus, 5 year w/ 2 year option, 25% cost free.

For comparison I’d appreciate any input if anyone has received offers in the above location. I’m assuming the bonus is low since it’s the first offer. Probably negotiate for 3 years?

Thanks

2

This is an offer to Lease not Buy.

3

Yes thanks my mistake in subject line.

4

You are correct thanks. Any ideas in whether $1,500/acre is decent? This location is inside Odessa city limits so I’m thinking horizontal production well is planned.

5

If your surface land is also going to be used as the drilling pad/location–and the company has no other location options-- could your property be worth much more? Do you have a single town lot or several acres? See the recent Midland Reporter Telegram article about Midland College’s negotiations with an oil company regarding a drilling pad.