Leon County TX Gas Lease offer

[Derek-SLO]

After some back and forth, Fredonia replied saying about our tracts in Leon County that “This area is a step out from the main area you may be hearing about, and we can’t agree to those terms. Being this is a new area, we need the 3 years, with a 2-year option.” They then countered my offer with two options:

Option 1: $800 bonus per NMA, $600 extension and 22% cost free on a 3 yr lease with 2 yr option.

Option 2: $1000 bonus on a straight 5 year lease with no option and 20% royalty.

I appreciate that they came up on their offer but still not sure if we should pull the trigger or wait given all the other Leon County activity posts I am reading.

[AnthonyCalifornia]

If you compare this offer to what we received from Mitsui via Sabana/Vanna just over three years ago, the offer you mention is less, but not that far off. Our mineral rights are seemingly right in the middle of the western end of the play, near Buffalo at the Leon / Freestone county border. Looks to me at face value you have received a respectable offer.

[Mineral_Owner5]

If you don’t ask for it, you want get it!