Panola County, TX Oil & Gas Lease Values Question

Oil and Gas Leasing Help
#1

Hello-

I have a small share of mineral rights (only 9 acres out of 360 gross) and received an offer to lease. I don't know what shale it is, but the land is located in PANOLA COUNTY, TX at:
-Thomas Alston Survey (A-11) and

-Jane Thorp Survey (A-665).

The lessee is Rockliff Energy LLC.

The offer is $500/acre for a 3-year paid up lease with 3/16 royalty. Since I have such a small number of shares, I'm not so concerned if the "going rate" is $500 or $525... I just want to make sure it's not significantly higher, making it worth my effort to negotiate.

Thank you for any insight you may have.

Merry Christmas!

#2

Hello Michael. WELCOME TO MINERAL RIGHTS FORUM

Next door to the Southeast in A-437 Rockcliff Energy has 2 approved permits for 12,000' Haynesville Shale gas wells....permits approved 12/12/2017.

A producing horizontal gas well to the South of your minerals in A-5/Devon Energy(369-37762)/Lease 265571/Well 10H---for the first 2 years of production produced about 1 million cubic feet of gas per day. Production began on October 2011.

The $500 per acre bonus money sounds OK but the Royalty should be 20-25%....also you need a 'NO DEDUCTIONS' clause in the lease you sign.

GIS Map of Panola County A-11:

331-Capture.JPG786×583 90.5 KB

CLICK ON MAP TO ENLARGE

Clint Liles

#3

Thank you, Clint!

A Merry Christmas to you and your's!