Lease Offer

I just received a letter from a landman about some mineral rights owned by my deceased father in Gaines County that I had no prior knowledge of. What these people are offering is no where near what I've gotten in Howard County. They are offering a bonus of $175/mineral acre, 3/16th royalty, and a 5 year term. Does this sound about right for what leases are going for in Gaines County? Thanks!

Go to and find your section on the map. Check for proximity to established production and permitted wells. Listen to this interview: I have no financial interest in Caple Royalty nor am I recommending you engage its services. I would think many reading this thread would be curious as to where your minerals are located if you are inclined to share.

Thanks AJ, and I will listen to the Caple Royalty interview. The property in question is Section 71, Block AX, Gaines County.


I see some older oil wells(vertical) in the area. Completion reports show they were producing from 12 to 27 BOPD on the wells that I checked. I also see some wells that were permitted but apparently were never drilled in the past. Link to Completion Report on well #37351/vertical/2011/Wasson Formation:

GIS Map of Gaines County Section 71/Block AX/A-2389 & A-1092 and surrounding area:

Clint Liles

Thanks, Clint!

Lory, There appear to be numerous producing wells within a mile of your minerals. My two cents which admittedly might be worth $0.00: do not lease for $175 and 3/16ths. If you own a significant portion of the minerals in the section, that will give you more leverage, and do consult an oil and gas attorney to help you get a fair lease. You might also try to look up the oil company interested in your minerals. You might get copies of leases filed by this company in the Gaines county clerk's office. If letter is from landman, ask which oil company.

Wonderful advice, AJ! Thanks so much! At this point, I don't even know the acreage dad (deceased) apparently had mineral rights in Howard County and now I find in Gaines County, too! There is no telling how much is out there! Am waiting on more information from the landman.

Great for you, Lory! Please keep us posted. I do think the interview I linked might have some useful concepts for you, too.

Yes, it definitely did! I've bookmarked the site. Thanks, again!

AJ...I just found out that I own 1/64 interest in All of Section 71, Block AX. Not knowing how large Section 71 is...I have no idea how 1/64 translates!

FYI. We had a similar starting offer for mineral rights in Gaines County. Worked with local oil & gas attorney and leveraged other family members to bring total holding to 25% of the section. Finished at four times your initial offer with 1/4 royalty and 3-year term (refused renewal option).

As with other replies: do your homework. Lease bonus is a one-time payment. More important is the royalty and hope that they strike something.

A section is roughly 640 acres (more or less). Our section is 644.2 acres. Individual mineral interest was divided down through multiple generations.

Thanks for the info, Larry!

This concept is still in its infancy, but it might be worth a look.