Any activity in this area, just got an offer to lease for $1500 per acre and 1/5 royality. I feel something must be happening. Anyone know anything?
Sounds like some company wants to pick up some minerals for a cheap ( bargain ) price.
This is a lease not buying them.
understand -- and this is cheap
Do you have a recommendation on what may be a better price for Ms. Wheeler to ask for?
What I have learned ( observed ) is that once an offers is received it is usually generated by a producer that has asked some land companies to acquire some mineral rights in an area that may be placed in a play of some kind. When an offer ( in my experience )is received it is very important not to make any quick deal -- that only leads to making a deal below what may be obtained by placing landmen in competition with each other. In other words being able to tell one that you have a new offer that is higher -- what can they do to beat it. If you do start to get multiple people interested -- set a date 90 days out and tell them you are going to make a decision then. Most will wait until the 11th hour to call in and up their bid -- and I have had two where a guy calls a day later and wanting me to un-hook my deal -- for his higher deal.
Don't give them a signed copy of the lease until you get a cleared check ----
Sorry for all this but my point is RARELY is the first offer received anywhere close to what you can get. Especially if you are willing to work the deal and have a nice amount of acres-- the landmen will get mad at you and try to get you to make a deal NOW!!!!! but don't - keep putting it off --- time is your friend.
However, this deal may be entirely different and this may be the very best deal available --- ( but I bet not )
Also, don't forget after you agree on a bonus and Royalty that you tell them you are placing your exh A into the lease -- ( no deductions , etc etc )