Cottle County, TX oil & gas discussion group. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
I was just offered 75 acre with an 18.75% royalty is this par?
I do see some production from older oil wells to the east of your minerals and also oil and gas wells to the southeast of your minerals. Also numerous plugged wells in both areas and a few dry holes. Even with oil prices falling I would say the $75 per acre is on the cheap side and the royalty should be at least 20%. Just my opinion.
GIS Map of Cottle County A-1498/King County A-1126 and surrounding area:
What would be a good counter?
I would ask for $250 per acre and 20% royalty. I am assuming you own 100% of the minerals on this acreage.
The offer was for 320 acres with a net of 69.22 not sure what the diff is we own a section in that area?
Is the operator wanting to lease your minerals Gunn Oil Co.? My brother was in the oil field supply business in Wichita Falls several years ago and he says that Gunn Oil Company is a good company to do business with. An honorable company that will do what they say. I see where they are a major producer here in Cottle County from checking some completion reports.
If I were you I would try to negotiate with them. They are definitely a company that drills wells. After posting some Completion Reports for Cottle County a few minutes ago I see where there are some good gas wells in Cottle County and some of those have been drilled by Gunn Oil Company. Try to keep the royalty up in the 20% range and don't worry too much about the bonus monies. The royalty percentage is where the real money is.
Good luck with your minerals.
Thanks for your help!
My mother owned the mineral rights to about 200 acres outside of Paducah. She passed away over ten years ago, and my sister and I are the inheritors of her estate. How do find out if my sister's and my names appear on the county records if a landman becomes interested in that acreage?
Use this link to get the contact # for the Cottle County Clerks Office. Possibly they already have that information or can direct you how to proceed forward.
Clint any updates on drill permits?
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