I am being offered a lease in Yoakum County, Section 560, Block D, J. H. Gibson Survey, A-1467. I am being offered $150/NMA (I have only 10) and 1/5 royalty. I signed a lease with the same people in 2015 for $500/NMA and 1/4 royalty and they never drilled. I also have surrounding acreage in other sections but I guess they want only this. I know there is no current activity nearby but does this seem right in this environment to have a lower offer than 2015?! Thanks, Joy
I had a similar lease back in 2015 in a section in the NW corner of the county. Similar surrounding context. Historically, we have gone 20-30 years between leases in the past… just at the point when I had pretty much forgotten about it this great lease popped in 2015. Glad to hear that there is some interest in the lesser explored sections of Yoakum! I haven’t seen any interest in my 120 nma since about 2018; the landman-agent I used to sell a few in the past can’t even be bothered to return calls/emails so I concluded that market was pretty dead and that my section wasn’t worth his trouble at this point (yes, rather surprisingly rude and hopefully, short-sighted!). You could try negotiating up as well as dig around and see if you can find a competing offer… or take it. You did not mention the term or if there are options attached to the offer… important considerations as well.
Thanks for the information. I haven’t followed up yet regarding the lease terms–thought I would start here first. My last lease with them was a 3-year lease with no option to extend. You are on point–my next step is to see if there might be other offers or negotiation. Thanks!
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