I’ve been offered $500 per acre with 20%. How does this stack up for southern Dawson County?
Not knowing your exact location - I think it sounds like a low-ball offer. You should get 25%. I would expect a leasing bonus between $1000-$3000. Are there active wells around you? Have you researched leasing in your area?
Thanks for the response @peggy2 . the exact location is NE/4 Section 28, Block 36, T-5-N.
Who made you the offer?
I agree with what Peggy said. That seems like a pretty low offer.
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I think I saw that you agreed that was your location. If so, there has been a lot of leasing in the area to your east by MCM. In fact, PBEX/MCM are currently drilling horizontals 3 sections to your east, API 115-34111 and API 115-34109 (and 108).
The wells in your area seem to be old Sprayberry wells with depths around 8000-83000 ft. The MCM/PBEX drilling permits are deeper - 10,600 ft. I think they are targeting the Dean.
We were first approached 2 y ago. The initial offer was 25%, $1000/A. We negotiated a much higher leasing bonus, which I would rather not disclose. Just know, it was higher. Our interests are in 25 36T5N.
BTW, I was clueless when I first was approached by CGS (EOG) several years ago. I learned a LOT from KyleL. If he says it is low, rest assured - he knows.
Thank you so much, peggy2!
Yes, it is.