I was offered $1000 per acre/25% royality for the mineral rights I own on 40 acres. I inherited this from my Grandfather who lived/died in Pecos Tx. The landman for Clayton Williams said he would be sending the lease forms and a check for the $1000/acre fed ex - which seems kind of a rush job to me - makes me a little suspicious of what its "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 Co 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 couldnt be too far away from the city of Pecos.
I am going to hire a O&G atty and let them review the paper work. Any recommendations on O&G Atty's?
My questions are -
1) Is this a fair price? (it appears to be from the postings I've read)
2) What is the "typcial" timeframe that they start actually drilling after a lease is signed? I know they have 3 years - but why waist your $40k and re-lease - seems to me they would start popping holes asap.
3) What is this region reffered in terms of oil field names or basin names. My father "thinks" the land area is in the Permian Basin.
4) Is a pugh clause worth having for 40 acres?
Thanks in advance