Bottom line per acre

Eddy Ct San Jose Subdivision. Permian is on the move again. We own mineral rights only on 3 lots equaling 1 acre. They are offering $750 for 5-year lease and 3/16 shared royalties. Does anyone have an idea what that means at the end of this?

Hi,

That seems very low to me. Assuming I am looking at the right stuff, that is somewhere west of 285 around the cemetery?

Five years is too long. 25% royalty. Bonus should be $2,000 to $4,000 IMO. On an acre it doesn’t matter all that much, but I’d at a minimum go for a 3-year lease and 25% royalty.

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