I have been offered $900/acre for the primary term and $1,000/acre for a two-year extension, plus 22.5% royalty interest, Section 74, Block 34, H&TC RY CO Survey, Ward County, TX. Does this sound reasonable in today’s market in that area? Have two family members that will probably take it, no questions asked, but thought I would try to do some homework. Not finding much information online.
Linton,
Check out the Ward County Texas Group. Some of those Forum members are getting up to $2500 per acre as of November 2012. There are 45 members in the Ward County Group. I'm sure some of those folks can answer your questions. Good luck on your lease.
Clint Liles
Those may be acceptable rates to give up control of your minerals but are they enough to give up control of your ability the collect the royalty? Make certain you know your expectations and get those in a lease. Otherwise, take a look at other options. You minerals are obviously valuable.
Sounds pretty good except for the royalty - it is usually 25% - who is offering you the lease.
I’ve heard it’s really low for the area. KEW.
I think $2,200/per acre bonus, no extension option, and 25% royalty sounds a lot better for that particular area!
Gary L. Hutchinson said:
Those may be acceptable rates to give up control of your minerals but are they enough to give up control of your ability the collect the royalty? Make certain you know your expectations and get those in a lease. Otherwise, take a look at other options. You minerals are obviously valuable.
Gary L Hutchinson
Minerals Management
Linton
We signed a contract with Jetta last month 25% and $2200 per acre bonus for 3 years. It was a small package in Sec 201, Block 34 in Ward County.
Jay Starnes
Anne Hudson is my wife. We met once in Kerrvile. Contact me if you need help..