Bonus $200/acre
3 year primary term
$225/acre to renew for 3 years
Royalty 15%
640 acres pooling
property: in Section 26 of T&P Ry Survey
Latest Lease Bonus and Royalty Offers in Nolan County - let's keep a running list in this discussion
These are absolutely terrible terms! 15% Royalty is a JOKE, it's 2013 and oil is 90$ a barrel!
What are good terms? We have an offer of $150/acre and 3/16 royalties. I don’t know if that is good or bad just better than we have on our other property
What part of the county are you guys in? The description above does not include a block# for the survey. Seems incredibly low.
dj
Talking to a landman who works Texas, but is not currently working this area, he suggested 22-25% royalty and a lease bonus of ? (whatever the market is - still not obvious to me here), and in addition he suggested that a clause be included for smaller acreages that all of the acreage be included if any of the acreage is included in a pooling arrangement.
The market is impossible to determine for Nolan Cty, unless you know what part of county. Runs gamet from 100/ac to 1200/ac.
dj
Dena Johnson said:
What part of the county are you guys in? The description above does not include a block# for the survey. Seems incredibly low.
section 200, block 64