I recently received an offer for the following - I appreciate your thoughts as a I’m still learning (may always be). I did some research and I think likely the royalty and the terms is fine but I was wondering if it was reasonable to try to negotiate for more on the bonus and if so what is reasonable. Thanks in advance.
2 k per net acre bonus consideration 1/4 royalty and 3 year term
Section 52 Block 34 H&TC Ry. Co. Survey Ward County, TX
Others can comment on the section itself but usually if someone is making you an offer of purchase they know activity is likely pending. They will also never make their best offer their first offer so negotiating is a good idea as is having a lawyer review terms.
Good offer - you may be able to do better but the MOST important thing to get is an iron clad, lawyer reviewed cost free lease
Susan A few months back we made a lease to Pioneer, in sec 34 two miles southeast of your tract. Their initial offer was 3K, 1/4 and 3 years. I countered at 5K and they accepted. FYI they are looking at the Woodford and Barnett shales. Continental has a Woodford test staked about 1 mile north of your tract. You should be able to receive a higher bonus but as others have said be sure to have an oil and gas attorney review before signing. Also beware of bottom feeders that may try to hoodwink you. A few weeks ago Caddo Minerals approached us with an offer to buy our minerals for $600 per acre!