I was offered $1000 per acre/25% royalty for the mineral rights I own on 40 acres. I inherited this from my Grandfather who lived/died in Pecos, Texas. The landman for Clayton Williams said he would be sending the lease forms and a check for the $1000/acre FedEx - which seems kind of a rush job to me - makes me a little suspicious of what it’s “really” worth. He was making exciting statements like “we have 13 rigs in the area”, “1000/acre will be a drop in the bucket compared to what you will make in royalties”, blah, blah, etc. - again - makes me suspicious of the value offer being made.
I have no clue as to where this property is yet - but I will contact Reeves County courthouse and figure it out. All I remember is that I used to go with grandpa and check out his cotton fields and watch all the irrigation pumps churn away - so it couldn’t be too far away from the city of Pecos.
I am going to hire an oil and gas attorney and let them review the paperwork. Any recommendations on oil and gas attorneys?
My questions are -
- Is this a fair price? (it appears to be from the postings I’ve read)
- What is the “typical” timeframe that they start actually drilling after a lease is signed? I know they have 3 years - but why waste your $40k and re-lease - seems to me they would start popping holes ASAP.
- What is this region referred to in terms of oil field names or basin names? My father “thinks” the land area is in the Permian Basin.
- Is a Pugh clause worth having for 40 acres?
Thanks in advance.