Leasing in Love County


#1

What is the going lease rate for mineral rights in Love County and is an offer of $329 per mineral acre for 3 years +2 a common offer or worth considering?


#2

Do not take the two year option. Not a good idea in most cases as market values may change to higher (or lower) values in three years. Also, need a section, township and range as the geology changes across Love County and prices vary.


#3

Unless there is a lot of activity, I doubt an operator is going to lease without the option here and you run the risk of just getting forced pooled. That said, that sounds like a low offer unless it is at a really low net to you (like 15%).