I am new to this forum. My family owns 50 net mineral acres in norther Washington county about .5 miles south of the county line and about 3 miles west from Independence Texas. We have 3 suitors wanting to lease from us. Esquisto and TMH and Verdun. I personally own 30 acres of the surface rights and my 9 siblings and me own the minerals of my 30 and the 20 on the Yague creek that separates Washington from Burleson counties. My question is 22.5% of produced oil a good number? Is $1250 per net mineral acre a good 3 year lease? Is anyone on this forum currently leasing around me? Thanks
I don't know what the going rate for bonuses is, but you should be wanting to get 25% royalty and not 22.5%. The play in your area is predominantly gas and not oil. I would also want a "cost free" lease, i.e. the only deductions from your royalty payment are the necessary taxes. Without a cost free lease, you can have your proportionate share of various transportation, gathering, processing, etc changes deducted from your royalty total. This deduction can get to be pretty significant (i.e. over 15-20%).
The big players in your area a Wildhorse, Geosouthern and Enervest - are the three groups you mentioned brokerage firms? Who do they represent?
Side note - leasing to a company that doesn't intend to drill ends up losing you money in the long run / even with a higher bonus number. The money here is getting wells drilled and receiving royalty checks.
Michael
Just came across your post from 11/17. If you don't mind saying appreciate knowing what you ended up doing on your lease offers. Thanks
Wild horse is the land company for Esquisto . We signed 3 years no extension $1200 per net mineral acre and 25% of anything that comes out
Thanks. Sounds good.