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How much was the bonus $ per acre? What was the royalty % and for how many acres?

Natch-man, are your sure it's a legit lease and not some sort of outright purchase of your minerals? That looks like a bonus of $5500 per acre, which is darn good these days (I think), unless there's some sort of major confirmation of production target (I suspect). Plus, if it was a legit lease, the offer should have included what you'd be paid per a % of future royalties. So, a quick bit of advice would be to ask questions and nail down some answers first. Please, don't sign anything until you clear up all of the details. Also, I'm sure Skip with chirp up and offer your some advice soon. In other words, for that acreage and for the amount of money, you very much need to talk to a good O&G lawyer. It'd be well worth it. Skip can point you in the right direction. Conversely, if it's an actual mineral buy, then the particulars get much more fuzzy/complicated. The name of the company making the offer is key, somewhat. Therein, hang in there, wait for feedback from the pros on GHS, and make a smart decision. For these types of things, there's never any reason to rush forward, i.e., there's absolutely never a reason to sign anything until you fully understand what you're truly dealing with. Bottomline, it's an interesting offer if it's a true lease and if the royalty percentage is somewhere about 20% to 25% (along with good lease clauses). I'm guessing Jay, a solid insider, would advise you that a 25% royalty is the go-to desired sum. Others might vary in their advice. Still, the huge bonus is a wow eye-catcher. So maybe there's something off-kilter or maybe you're in a darn-good sweet spot and you have the potential, with the help of a good lawyer, to ink an excellent "lease." Don't rush it. 

Thats $5,500 per acre, you better take that.

What Range?

Your location description is missing a Range.  It should look something like this:  Section 34 - Township 10 North, Range 10 West.  No need to be leery.  It would help to know the company offering the lease and the general terms:  royalty fraction, length of lease term, bonus per acre......    Indigo Minerals is the operator active in the area that I think you are trying to describe but most of their leasing, of which we are aware, occurred about a year ago.  The company is still drilling in the NW corner of the parish and south along the parish line with Sabine.

Your welcome.  That sounds suspiciously like an attempt to buy your mineral rights.  Indigo Minerals permitted a well that will produce from Section 34 on 3/16/20, three days ago.  If you are not leased, you need to be talking to Indigo.  You also need to check to see if the public records of Natchitoches Parish clearly show your ownership interest in Section 34.  I suspect Indigo would have already offered you a lease unless that just fell through the cracks.

SERIAL

WELL NAME

WELL NUM

ORG ID

FIELD

PARISH

PROD TYPE

SEC

TWN

RGE

EFFECTIVE DATE

API NUM

252273

HA RA SUW;RUSS 2&35-10-10 HC

002

60005

4894

35

00

011

10N

10W

03/16/2020

17069204600000

 

PRMT DATE

SPUD DATE

STAT DATE

ST CD

03/16/2020

03/16/2020

01

SCOUT INFO

REPORT DATE

WELL STATUS

MEASURED DEPTH

TRUE VERT DEPTH

DETAIL

03/16/2020

01

22000

327' FNL & 296' FEL OF SEC 11-T10N-R10W. PBHL: 1850' FSL & 440' FEL OF SEC 35-T11N-R10W. (REPERMIT OF SERIAL #251493-EXPIRED)

Click on 60005 under ORG ID to find contact information for Indigo.  And by the way, pay no attention to lee.

That's not an offer to lease.  That is an offer to buy your royalty interest in the new well.  And any additional wells that get drilled in the future.

See my answer right below yours; we were posting at the same time.

Selling royalty is not much different from selling your mineral rights. The tax situation is just not as good.  If you would like to cash out, talk to Indigo first.  Operators sometimes buy minerals under their own wells.  Live Oak is a reputable company as far as I know.  I see plenty of their mineral deeds in the public records on Haynvesville Shale parishes.  If you are interested in selling, try negotiating with them for a better offer. 

RE; Landmen.  I can provide you with an opinion of value for the mineral rights but not the timber or other surface value.  You would need a timber appraiser for that.

You're welcome.

Natchitochesman - if you want everyone's opinion just scan the letter in, quit trying to make all of these people guess what the letter said.

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