I have mineral rights for 8.3025 net acres in Gaines Count TX. The property description is Labor 22 League 297, Reagan County School Lands, A-817. I just received lease offer from J. Cleo Thompson of $400 per acre and 1/4 royalty for 3 years with an option for two more years at $500 per acre. This is the same as what I originally leased at in 2013. This current offer seems low to me. Does anybody have any ideas on what a good counter offer should be?
Gaines County A-817/Section 297
I would counter offer with $1,000 and negotiate. $400 is on the cheap side in my opinion. The 1/4 royalty is good. There are some good oil/gas wells nearby and 1 producer in A-817/Section 297. J Cleo Thompson seems to be the main operator in this area. This link is to Production Data on well API 165-38420 in far Eastern part of Section 297/A-817. Manipulate the beginning date range back to May 2017 to view all production on this well.
GIS Map of Gaines County Section 297/A-817 and surrounding area:
DOUBLE LEFT CLICK ON MAP TO ENLARGE
Clint, Thanks for the information.