Near Elkhart

We received a lease offer for $125 also but with 1/8 for the first three years and 3/16 for the 2 year option. Just researching now, but sounds like we can improve from that....

DJ,

What formation was this operator targeting? They may be targeting the Eaglebine formation. I have turned down 4 different offers in the past year on my ranch in Wilbarger County Texas. Three different companies offered $150 and a company in Wichita Falls offered $200 per acre. My minerals are worth more than that. As for royalty I will accept no less than 20% or 1/5. A three year lease is long enough for a company to drill a well. If they can't drill one in that length of time, move over and let someone else have a try. Never accept the first offer. It is to the advantage of the oil/gas company and not yours. What have some of your neighbors been offered? How many acres do you have minerals on and do you own 100% of the minerals? Just don't get in a hurry, don't be intimidated by the company and don't give your minerals away. Good luck.

Clint Liles