Is $350/mineral acre bonus & 1/4 royalty reasonable? 3 yr. w/ 2 yr ext?
Welcome to the forum!
I cannot comment on the bonus amount, but I never do an extension. Too much can happen in five years and I don’t tie us down for that long. The two year extension implies that nothing is going to happen for a while.
If you post a location, that would be helpful as the bonus is relative to location and potential reservoirs.
John Beauchamp; A-42
At a high level, that looks like a decent offer! We own in the area, but haven’t been offered a 25% royalty. We’d be interested in knowing who made the offer. Thanks!
A 25% royalty is excellent. 20% is good if negotiating a no-post production clause.Regarding bonus, offers have run from $300 to $650, depending on location and size of acreage. I too would be interested in knowing who made the offer!
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