I received a letter to sign an Oil & Gas Lease
I don't know anything about mineral rights etc. I just received a letter to sign an oil and gas lease for Sabine Oil and Gas Corp wants to lease my mineral interest. The letter is from Monument Resources. I have 0.46838 Net Mineral Acres Access of approx 120.28 gross acres of land.
The particulars are:
3 year lease
3/16 Royalty
Bonus payment of $300 per net mineral acre equaling $140.51
Is this a good deal? Thanks for any info you can provide.
Views: 561
Replies to This Discussion
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landownerPermalink Reply by Michael on -
PS: The land is the E.W. Gibbs Survey, A-229, Panola County Texas
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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on -
Is Monument Resources leasing on behalf of Sabine? I'd ask. It's not a great offer but with less than a half mineral acre, your negotiating position is poor. The royalty is the more important lease term. I would ask for a one fifth royalty (20%) and I would forgo the bonus if I had to to get it. If Monument Resources is not representing Sabine, I'd pass and wait hoping that as time to develop rolls around Sabine would make a somewhat better offer. Al of Panola County is good rock and should see full development.
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