Prices and Interest?

I was wondering if anyone has any idea of current bonus price rates and royalty rates going in Montague County, more particularly toward the South and Southeast of the county, getting into the Barnett Shale.

I saw the post from March 2017 with $100 per acre and 1/8th royalty. Does this still seem like the going rate?

Also, is anybody else aware of any leasing or operations going on in the area?

Chad,

I can't help you on the bonus money but 1/8 royalty is very unacceptable. 20 to 25% is the normal rate today.

This list is the approved permits for Montague County since January 1, 2017 to present...not much going on in Montague County at this time.


CLICK ON DOCUMENT TO ENLARGE

Clint Liles

Thanks for letting me know. I thought an 1/8th sounded low.

I was really hoping there was more interest in the area.

The last three leases I've given in Montague in '14, '15 and '16 were all for $400 per net mineral acre and 1/4th royalty for three years with no extension. Never give a lease for an 1/8th and always hold out for 1/4th if possible. You need to locate some modern lease riders as well; vertical/horizontal Pugh clause, free royalty, 90 day pay, access to records, minimum royalty, limited shut-in periods, etc.