Recently received an offer to lease 80 acres @ $100/acre with an 8 month lease and a “Bonus Payment” of $3.53 (probably cost more to mail the package than than) from Pinson Land Services for property in Borden County, TX (as stated above) and 20% of sales of oil and gas. Anyone else receive this offer? I believe it is way too low and a very short term lease. Any input would be greatly appreciated. Thanks!!
There are 3 Section 37, Block 33’s in Howard County. One in Township 1 South (T1S), One in Township 2 North (T2N), and One in Township 3 North (T3N). Please tell me which one.
$100/acre offer on 80 acres wouldn’t calculate to $3.53 bonus payment unless you are saying you own an extremely small share of the mineral interest in that 80 acres.
Not saying that’s a good offer, but a lease term of only 8 months typically would mean they have plans to drill very quickly, which would be to your advantage.
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Dusty…thank you for your input ! I think you are correct!
LizaLee probably has .0353 net mineral acres, which is a very small portion of the 80 acres. The bonus should be worth more than $100/nma, but even at $1000/nma that’s only $35.30. I would ask for an even $100.
More important though is the royalty which should be 25%.
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Donald_Skotty, Thank you so much for your reply. I agree!
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