What are lease offers in Taylor County looking like these days?


#1

I just received an oil and gas lease offer for property in the NW part of Taylor County, TX (near Merkel). The bonus offered is $25 per acre and the royalty offer is 1/8 (12.5%). This seems low to me on both sides, but my only recent experience is with leases in Dawson County where things are a lot more active.

Can anybody offer information about what other offers are looking like in Taylor County? Thoughts on the level of exploration and the success rate in that area?


#2

Not much activity but seems low. Maybe ask what prospect they are going for, as it can affect what you ask for. In other words, if it is a little 900’ shallow well, a little higher, but if something 2000’+ then quite a bit higher. Probably difficult to get better than $250/acre and 20%.


#3

Thanks so much for your reply. I really appreciate it.

What a shame (for landowners) that there isn’t open bid/ask price data like you can get for stocks and commodities!