I have been contacted by Energy Horizons and offered a oil and gas lease for my property in the south west corner of Wilson County. The offer is $450 acre signing bonus and 1/5 royalty for 3 yrs. I was wondering if anyone else has recieved an offer like this?
I have also be contacted by Pioneer. They are reviewing their land holding and i should hear back from them this week..
ReplyDelete1200 / acre in dimmit co June, 2010
ReplyDelete1/5 % royalty sounds low
ReplyDeleteNever settle for less than 25% royalty. They WILL pay that percentage, they just start out negotiating lower.
ReplyDeleteI wouldnt settle for less than 3000 leased (not sold) an acre plus royalties of 20 to 25% at the well head not the meter(dont have to pay transportation taxes on your cut)Plus dont let them have in the stipulation that they can lay a pipeline under lease rights or build access roads(you can get paid for all this at a later date again on top of what you get the first go around
ReplyDeleteI need to learn more about leasing. What reading do you suggest?
ReplyDelete