Hoping for a little insight on a lease offer in Love County. T.C. Craighead has sent me a lease proposal that apparently L.E. Jones Production Company will be drilling. Section 27, Township 6 South, Range 2 West, The offer is for $300 per mineral acre, 3/16th royalty with a 3 year contract. Looking thru the site I do not see much recent activity in Love County to get a feel for this offer. Myself and three other family member only have 1.25 acres each in this location so it’s not much to lose sleep over. Any thoughts and or comments would be greatly appreciated.
There is quite a bit of pending activity 6S-2W. If I were you, I would wait for a week or so and see what the current pooling cases come out with on the orders. 89 Energy, XTO and Continental Resources all have pending hearings. Section 25 hearing was supposed to be yesterday and Sec 26 hearing is scheduled for next week. The outcomes of those will give you a better idea of the going offers. 3/16ths is a generic offer. I always ask for the 1/5th and 1/4th offer as well. There terms of the lease in the wording of the clauses are so much more important than the bonus amounts. Most first drafts need some negotiation to be more mineral owner friendly.