I was offered 75 an acre with an 18.75
Abstract 1498, cottle county and abstract 1126 king county
Is this a proper offer?
Things vary from case to case. How much land is involved? Do you own it yourself, or are other relatives involved? How badly do you need the money? I am a bit of a neophyte in the oil and gas business, but I know that the price is down on the product. Bloomberg shows this morning west Texas intermediate at $57.13 and natural gas at $3.46.
Now may not be the best time to have the product come out of the ground. If you don't really need the money, it might be best to wait until prices improve. The situation could improve, or it could be worse. The middle east is in a flux now, and a major war could temporarily affect prices.
Whoever is in control in the middle east, they will sell product as soon as they can. Nations like Saudi Arabia have massive social welfare programs that they must fund. So it may take quite a while for the price of the product to come up.
Once you sign that contract, you are stuck with the terms and conditions. Ask your neighbors how things are working out for them. Remember, the oil company will ding you for compression, transportation and any other thing they can get away with.
We have six wells that pay us basically next to nothing. When we were approached to lease more of the ranch, we asked ourselves "Just how much more of nothing do we want?"
Sometimes, it is just better to say "Thank you, but no thank you." That is my opinion, others may have differing ideas. It is up to you to evaluate the situation and pick what works for you.