A client of ours has received an offer to lease in the southwestern portion of Fayette County. Any idea what the current bonus, primary term and royalty are?
Thanks.
David
I own property in northern Lavaca County just south of Fayette County line. Conoco / Burlington went through our area and leased for Eagleford about 2.5-3 yrs ago. There general lease terms were 150-250 an acre for a 3 year paid up lease with a 2 year option to release for $25 per year rentals. Royalty was generally a 1/5.
We did not lease.
Recently spoke to a neighbor near Moulton who signed a lease for $1000 per acre. He did not mention royalty. It was only for 24 acres and they are drilling a well within a mile of his property. I believe that lease price must have been “clean up”. Probably on high side but I bet $200 per acre is way low now in the Eagleford trend.