I have recently received two lease offers for Winkler County, Texas (same company - Caliber Land Management):
Section 16, Block A-56, PSL Survey, A-175 (.40 net acres)
Section 3, Block 74 PSL Survey, A-1481
Section 16, Block 74 PSL Survey, A-1484 and A-1940
Section 20, Block 74 PSL Survey, A-1486
Section 21, Block 74 PSL Survey, A-1685
Section 34, Block 74 PSL Survey, A-1686 (.77500 net acres)
Both are for 3 years plus two-year offer to extend
25% royalty
Bonus consideration $500 per net acre
If anyone can advise me on if this is a reasonable offer or what I should ask for. I am new to this. I will check out the areas but am looking for some direction as to what I should be looking at and any info. Any help is much appreciated.
That area of Winkler is very active. Continental has a rig south of your minerals and Basin has a rig east of your minerals. I would negotiate a higher bonus amount per net acre.
I leased my parcel (Section 13, Block A 56) to Continental earlier this year, after they had started drilling a 2-section horizontal well (JACKRABBIT 1308A 01H). Several commentators on this forum suggested I obtain counsel, which I did using one of the forum’s supporters. If I am allowed to give a shout out in support of my attorney, I will be happy to do so.
We leased to Continental for $1000 per net mineral acre, no deducts other than the usual. Importantly, with 1/4 royalty, which in my opinion is a lot more important than the bonus.
We don’t know the results yet but the well has been drilled and fracking has been reported. Comments from the forum were VERY helpful during my negotiating process.
Did the landman with whom you had initially negotiated return, or did you and your attorney interact with a new landman? I would hope this forum encourages positive reviews of advertiser-client–attorney client in your case–relationships. Fort Worth, Austin, or San Antonio?
