Mitchell County TX - Oil & Gas Leasing

I have been contacted by a company that wants me to sign a lease in Mitchell Co. Tx. I apparently have the mineral rights, but i don't know to how many acres yet. What kind of dollar amount per acre and percentage of royaltes should i settle on, or be a good deal for me? The lease is going to be for 5 years.

HI Sarah,

The dollar amount per acre, also called a lease bonus, will depend on your location in Mitchell County. The royalties I am aware of range from 3/16 up to 1/4 with 1/5 being reasonable in my view. Some of the landmen have been offering $100 to $150 per acre, but I believe oil companies have been paying $250 to $300 per acre for land near Colorado City and Loraine. These have been 3 year leases with options for 2 additional years at the same price per acre. Where is your land and do you know approximately how many acres you have?