I’m not sure where Billie is talking about but no section next to yours has several wells on it and Callon doesn’t seem to be active in your spot. I think Callon is mainly in NW Howard while the land you’re talking about is in the far NE part of Howard. So what Billie is talking about is probably 30-40 miles away (Correct me if I’m wrong though, there’s only one Section 32, Block 27 in the county)
$750 isn’t a terrible offer considering the area it’s in has had as many dry holes as it’s had completed wells that produce over the years. And none of the vertical wells that have been completed over the years have been anything incredible. I think just earlier this decade a lot of sections in that block were getting leased up for $250-$400 an acre but most of it never got drilled. The reason why companies are coming in and offering more right now is because the far west end of your block is seeing some really good production on horizontals that were drilled this past year. It’s been a huge play that has been slowly creeping east over the last few years but it’s not to Section 32, Block 27, H&TC Survey just yet. Also, 25% is good. You won’t get more than that.
I can’t tell you what you should be accepting as a bonus but I will say it’s probably more than anybody has ever been offered for that area, and that 3 years ago nobody would’ve touched those minerals for anything north of $500, and lastly if 1-2 bad wells are drilled a couple of miles west then $750 probably won’t be seen again in your section for a long time. If you own a bunch of interest then you’ll have some leverage on that bonus offer but if you don’t own much then you could ask for a little more, throw some clauses in there you like and then accept the deal. You won’t be making most of your money off the bonus if things work out. It’ll all come from royalties if the boom continues on east to Mitchell County.