I’ve been offered $2,000 per NMA by one landman and another landman wants to lease my 4 acres for $175 per NMA, 20% royalties and 5-year lease. The NMAs are located in Leon County, Texas in the Copeland - 162 survey. I’ve done some research and received information from this site but things have changed a bit and it looks like both offers are very low. But I wanted to get real information from the expertise on this board.
Thank you all information is appreciated.
$175.00 per NMA is ridiculously low.
I was just offered $1,200 per NMA in Shelby County.
The $2,000 offer seems good, but I’ve seen much better and much worse. Sometimes there’s absolutely zero negotiation as well.
If you go ahead and lease, ask for “cost free production” or zero production costs.
Be very careful. You came to the right place. If you dig a little deeper, you will see that there is a massive natural gas play in Leon, Freestone, Anderson, and Limestone Counties. Prices are significantly higher than what you are being offered.
The N Copeland A-162 is located in southwestern Leon County, bordering Madison County. It is NOT in the Comstock lease area that is focused on Lower Bossier/Haynesville.
Here are some previous posts:
https://www.mineralrightsforum.com/t/leon-county-mineral-interests/80130
How much would be a good price to push for?
Of course that’s impossible to say because it’s not known if the offer is legit, if the land is somehow restricted, if it’s desired by whoever may be purchasing at any given time.
Now as Alan said you are 10 miles or so outside of where the major activity is happening, so who knows.
As they say in real estate location, location, location.
$1200 NMA and 20% royalty would seem to be more acceptable if this area is desirable for deep gas extraction. Some have gotten more.
One thing I will say is you want that royalty. For me the lease is important, but the royalty is what we want to realize.
The offer to lease is legitimate. I have a lease agreement in writing from Grizzly Land Services and have been contacted by a landman from Fort Worth to purchase the land for $2,000 per Net Mineral Acre.
If I decide to lease, I’m thinking of asking $1,000 per NMA, 25% royalties cost free, 3-year lease with 2-year optional but must pay bonus.
If I sell, I’m still not sure what I should ask for. Landman offered $2,000 per NMA; maybe ask $5,000?
Thanks for your help!
Hey @BobIV, just a rule of thumb, certainly not gospel or the proper metrics to use due to all the factors one should know when determining value of minerals. However, if one were to sell vs. lease, your sale price should be 3-5 times what it would be to lease. Where are your minerals located in Leon County?
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The mineral rights are 4 acres in Leon county in Copeland 162 survey area
BobIV: I posted once before hoping to clarify if you belonged to our family group. We had a line of Bobs (with the initials RJW) in CA and I think they extended to IV. I accepted an offer from Grizzly last year for the $175 NMA for my 2.85 acres.
I noticed the name and we are part of the same family. Grizzly is supposed to send lease agreement next week.
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