Just offered $500 and 1/5th for 5 years in Rusk Co

Texas Mineral Rights Rusk County, TX
1

My thoughts were 5 years is a bit long and I’m quite sure 20% is on the low end. Anyone else have experiences around A-21 in Rusk County?

Thanks in advance,

Mike

2

Three years is the current market but if you can wait you should ask for $750/acre or 25% to offset the years. Size of your tract will help to determine bonus. If you have over $300/acre you may require lower your offer.

I am asking.

3

Thanks for the reply. They said it was $300 but wanted to forego the 2-year follow on and just do it all at once for $500. Also tried to go 25% and it’s a no go… Still have a little time to see what happens. Only 12 net acres.

4

If you need the additional 200 take the 500/ac but I would hold for 3 yrs, you may get a much better offer after 3 yrs.

Mike L. said:

Thanks for the reply. They said it was $300 but wanted to forego the 2yr follow on and just do it all at once for $500. Also tried to go 25% and it’s a no go… Still have a little time to see what happens. Only 12 net acres

JOHN SAID:

You have very little leverage with only 12 ac but hold to three yrs but if you need the additional 2000 then the 500/ac.

5

Hi Mike

I just received same offer from Sendero Resources Thomas McDonald Survey A21. Was your offer from the same?

Did you proceed with your lease?

Thank you

Patty

6

Yes Patty we did proceed and sign the lease. Brett Halfman was the landman we dealt with.

7

Mike L. said:

Yes Patty we did proceed and sign the lease. Brett Halfman was the landman we dealt with.

Best Regards, Mike

Patty Stritz said:

Hi Mike

I just received same offer from Sendero Resources Thomas McDonald Survey A21. Was your offer from the same?

Did you proceed with your lease?

Thank you Patty

8

Thank you Mike, so you accepted the 5 years?

9

Yes… he said they would go 3 but for less $$. Mentioned they were lumping it together and doing 5 to eliminate the follow-on. I’m not really dealing with much acreage so I went with it.

Seems like it may get some drilling activity.

10

We are new to this forum and am glad I found it. The pricing is interesting and we were just offered $300/AC and 20% Royalty in Rusk. Looks like a low ball, so am thinking about going back and ask for $750 plus 21.5%. Also, the landman wants a two-year extension.

Appreciate any comments and thanks in advance.

11

We also were offered $500 after turning down $300 for three years plus two renewal and 22%.

12

Howard, where in Rusk County is your mineral interest located and how many acres do you have? Thanks. Jim Herod