Could I please hear from other Lee Co royalty owners as to what are the going rates to sign a deal in Lee Co? We have an offer on the table for 20% with $500 per net mineral acre and I am trying to gather information as to whether or not that is a fair deal.
Also I would appreciate any information as to what is going on in Lee Co including current drilling, production, good companies to sign on with or companies to avoid, Eagleford Shale drilling in Lee Co or any other information on what's going on in the Lee Co area. Thanks in advance for your help!
Lease rates and royalties will vary in Lee County depending where you are in the county. This is due to the highly variable subsurface as to the target formations.
To get an idea of comps for your area, need to know where in the county you are located (ideally abstract name and number).
As for "what is going on in Lee County), a book could be written on that - different plays and players in different areas with different degrees of success and "less than success".
Suggest you jump into the Tx RRC free site to check out completions, permits, production, etc. in your area. The GIS mapping option is best place to start. Link to this is below (I would suggest you use the legacy site option).
Good morning Deborah. Even though you're in a great area of Lee, I think with the current volatility in the oil market and oil at $47/BBL that $750-$1500 is not realistic. I know that multiple E&P companies have either cut their $ per acre amount in half or completely pulled out of Lee Co. $500/acre and 20% seems more than fair with the uncertainty in the energy sector right now. 6 months ago, I think Rock Man would be 100% correct.