Received a lease offer from a land man on some acreage I inherited in the Somerville, Lyons area. 20% royalty and $400 per acre for 3 years. Is this a low ball offer, was wondering what the per acre price was going for?
Think you’ll have a better chance of finding someone who can answer your question if you post it in the county section your land is in…Washington County, Burleson County? Go up to Counties at the top of this page, then select Texas and then your county.
Also if you can post a more detailed description of where it’s located, like the survey, abstract number, we can help you check for recent activity around there. If you don’t have that tell what roads it’s near.
The other thing I always suggest is trying to contact some of your neighbors, see if they have gotten offers and if they’d be interested in negotiating as a group since larger acreage can mean a better offer.
Thanks, waiting on the paperwork from the lawyer with the details. Its in Burleson County right off Somerville lake.
Welcome to the forum. I moved your question over to Burleson county.
Which producer is the lease offer from?
I just negotiated a lease under lake Somerville for $2,500 per acre, 1/4 royalty for 3 years. This lease was just to the base of the Austin Chalk so I reserved any deeper rights. I think thats the play in that area.
Thanks for the information.
Eagle Valley Energy Partners LLC.
A landman representing Eagle Valley Energy Partners out of Somerville.
Thanks for the feedback. We haven’t had any dealings with them, but I was more curious if it was WH/Chesapeake working that area.
As a mineral owner in the area and under the lake. If you are around the lake, or under the lake, it is best to just sign and hope the lake can be sorted out. Surface access and pipelines are a nightmare here. Only when the mineral owners cooperate can the tracts be drilled. One hold out can harm the others and prevent drilling. The Somerville area is unproven, and all the wells around it have been sub economic and marginal. Also the eagleford is nowhere near as prospective as the other areas in Burleson County.
Mr. Davis had the last 25 acre lease on a 800 acre tract that was 100% leased besides this tract. He got an above market offer as a courtesy to him demanding an absolutely ridiculous and insane 6,000.00 an acre and there was no time to deal with it as he was the last tract. The average going rate under the lake is 500 an acre and 20%. If you have less than 100.00 acres, do not dally. Its best to get it over with and let the companies try to develop it.
Signing bonuses are worthless compares to royalty.