Fair bonus for all depths in Dimmit County

[William_Douglas_Archer]

My brothers and I own 25% of the minerals in Abstract 604. I have been approached by Landman working for an operator we already have a number of wells with to lease this tract. They want all depths and a three year term. Expecting a 1/4 royalty. With that said, what should the bonus be?

If limited to the Georgetown, what should the bonus be?

Does all depths at $1,250 per nma seem reasonable? Does $1,000 per nma seem reasonable for limited depths?

(Their initial offer was all depths, 1/5 royalty and $350 per nma bonus, and I had zero interest in that)

[nop_llc]

Just responded in your other post, but based on the geology and low gas prices seems like the $1,000/acre for the limited depths would be best being Eagle Ford / Buda / Georgetown. I’d think you could get another 1,000/acre for the Austin Chalk. And there is gas in the Pearsall.

[William_Douglas_Archer]

Thank you. The operator (exco) seems to me to be most active in chalk and buda but contract Landman seemed to want all depths.

[nop_llc]

Fair enough if they want to test multiple formations, but maybe at least limit to base of Georgetown…or do a depth severance that releases anything below the deepest drilled well.