Received an offer for 1500/NMA No talk of bonus, I need some direction please Section 184 bock 34 Please and thank you MM
Hi MM, although there are no producing wells nor well permits in this section there is production in the immediate area. Is your offer a leasing offer or a mineral purchase offer? If it is a lease offer the $1500/nma would be the bonus. That seems to be a fair offer as it may be somewhat speculative. This section is right Northwest of the townsite of Barstow so it may be hard for the operator to find a surface location and/or to get infrastructure in place (roads/drill location/pipelines) but this is just my speculation. If it is a mineral purchase offer that’s too low.
That is leasing offer.
So you are telling me the 1500 is lease pymt & bonus?
Thanks for any assistance
Gracias
MM
$1500 is very low unless you have unusual circumstances. Start at $13,000.
MM, you’ll have to ask the company who is making the offer exactly what the money is intended for but it sounds like that is going to be a bonus amount per net mineral acre for the net mineral acres you own in the tract of land. 99% if not close to 100% of all leases taken nowadays are paid up leases, which means the bonus is paid when the lease is signed and the lessee does not have to pay delay rentals during the primary term of the lease. Most common form of payment are: (1) bonus at the beginning when you sign the lease and if there is a well drilled and starts producing while the lease is in effect you will get (2) royalty checks for your interest, usually monthly check. I’ve never heard of a lease payment, but that’s probably one in the same as a bonus. But again best to have this cleared up by the company that’s making you the offer.
Per NMA. If this is a tiny acreage, it may just be an offer of $1500 cash for a lease. Per acre range around Barstow is $10,000-15,000.
Thank you so much for your advice. it is $1500 for a 3 yr lease.
Mr . Caldwell,
Do you know the NMA value for 34.4 NMA in Blocks 3,4 and 29 in Northwest Tom Green Cty, TX. Also, the leasing value? Thank you.
JC-
Would be better to post this question in the Tom Green County, TX category.
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