Is the following a reasonable offer? We have been offered $300 per net mineral acre, 1/5 royalty, for a three-year term with option to extend for an additional 2 years. The depth earned under lease will be total depth drilled plus 100’.
Also, we have been having difficulty finding an oil and gas attorney to review our lease. Anyone have a reputable oil and gas attorney recommendation?
I am not a NM attorney, but this guy is: Jeremy Morgan
Morgan Law, PLLC
He is willing to review it and advise you.
Horizontal activity is heading that direction with BTA drilling south of Lovington and Matador to the northeast. In general, a 1/4 royalty is fair to ask. Depending on the size of the tract, you should be able to get a better lease bonus
Look, $300 is low for a 3 year w/2 year option. 3 years gets you to 2028. Why would anyone want to guarantee that they would lease their minerals in 2028 for $300 and a 1/5th royalty. Realize the option is a one way street favoring the Lessee. You are locked in, they aren’t. I advise my clients against this. Someone advised talking to an O&G lawyer. SMART.