The Mineral quest seems to be heating up in Southern Fayette County. A couple of years ago the up front crew of landmen started picking up mineral acres from mineral owners who were anxious to get a few quick bucks. At that time the going rate seemed to be about $100 per acre for the first three years and maybe $100 for an additional two year option. Along with this the offer was a 1/6th royalty.
A couple of months ago, the oil was beginning to flow just South of Gonzales which is only about 30 miles South of Southern Fayette County. There are a few mineral owners just South of Gonzales that are now raking in over a $1000/mineral acre each month. Quite a chunk I would say.
Now back to Fayette County. Today the offers are rising like a thermometer in the dead of a Central Texas summer. The new offers are for $1000/acre and 1/4th royalty. Some people are still jumping at the first offer; however, most folks are beginning to start thinking. Today I heard that some people have gotten as high as $1600/acre; however, $1000 seems to be the target number with 1/4 (25%) royalty.
Right now it seems to be speculation with an excellent potential for tomorrow.
Remember to think before putting the ink to the paper!