Dawson County Lease question

Oil and Gas Leasing Help
1

Received an offer from a company in Midland to lease this property.

Curious about a lease offer I received. Is it fair? Is there anyway to stipulate that if I lease it to the interested person that they actually do something with it and not just sit on it.

Property description

E/200 acres section 1 block 2
D.I.Cunningham Survey
undivided 8/8 mineral interest
20% royalty.

The offer I received seemed pretty low to me and is what I would expect for a cold contact.

Any ideas what this should be leasing for?

Thanks in advance.

Y'all take care

2

They may just lease it and then flip it. It is an easy way to make a buck. You may not see your bonus until they have a customer for the property. What is the company's history like? Do they actually work properties, or are they in the flipping business. Google is your friend. Do some research.

3

Thank you Robert.

I suspect they are flipping business.