I have been approached with an offer for an Oil and Gas Top Lease on some mineral rights that we own in Live Oak County (in a portion of the Sanger Ranch - T. Welch Survey – I have more specifics regarding the exact location, but this is a ballpark). I have never been sent an offer for a top lease, so I am not knowledgeable as to whether this is a fair offer. The details of the offer are: • $150 per net mineral acre bonus consideration (payable within 60 days of the date the existing “bottom” lease is released and filed of record) • 20.00% Oil and Gas Lease Royalty • Oil and Gas Top Lease Bonus- 10.00% of Bonus, as described above, payable on date of execution of Oil and Gas Top Lease • Oil and Gas Top Lease Term- 18 Months • Oil and Gas Lease Term- 3 Year Paid-Up Lease with 2 Year Option to Extend • $150.00 Per Net Mineral Acre Extension Bonus Consideration • All Depths
Thank you in advance for any advice that any of you can provide me.