We just got an offer on a contract on land near Yoakum. My question is about the "per acre bonus". Anyone in north Dewitt Co. care to share what offers are out there? The offer comes from Sabine O&G and I just would like to get a feel for what is reasonable. Thanks
I wouldn't accept anything less than $3000 per acre for 3 years. I also recommend that you not allow the 2 year extension most of them ask for, in other words make them renew at the end of 3 years. The real key is to negotiate a higher percentage on the royalties as that is where the real money is. Be sure you have a good attorney look over the paperwork!
Jennifer, Thanks for the insight. Have there been offers signed for $3000. per acre or is that just a "you should try and get" number? I'm ex-military, so I like to enter negotiations with facts on paper is the reason for my inquiry. Thanks for the tip on refusing the extension, I didn't know that.
Jennifer L said:
I wouldn't accept anything less than $3000 per acre for 3 years. I also recommend that you not allow the 2 year extension most of them ask for, in other words make them renew at the end of 3 years. The real key is to negotiate a higher percentage on the royalties as that is where the real money is. Be sure you have a good attorney look over the paperwork!
to Robert Hrabovsky, I think our family knows each other if your brothers name is leon. I am interested in information regarding your lease. I also have land in dewitt county but in yoakum. I would like to hear from you. my email is steveab1965@gmail.com or 713-412-0703 thank you. steve black