My brothers and I own 25% of the minerals in Abstract 604. I have been approached by Landman working for an operator we already have a number of wells with to lease this tract. They want all depths and a three year term. Expecting a 1/4 royalty. With that said, what should the bonus be?
If limited to the Georgetown, what should the bonus be?
Does all depths at $1,250 per nma seem reasonable? Does $1,000 per nma seem reasonable for limited depths?
(Their initial offer was all depths, 1/5 royalty and $350 per nma bonus, and I had zero interest in that)
Just responded in your other post, but based on the geology and low gas prices seems like the $1,000/acre for the limited depths would be best being Eagle Ford / Buda / Georgetown. I’d think you could get another 1,000/acre for the Austin Chalk. And there is gas in the Pearsall.
Fair enough if they want to test multiple formations, but maybe at least limit to base of Georgetown…or do a depth severance that releases anything below the deepest drilled well.
