Have 275 acres between Tenaha and Center, highway front property. Was made an initial offer of $100 per acre 3/16th royalty on a 5 year lease with 2 year option to renew. Does this sound like a reasonable offer or a lowball? I don't have much insight into the oil/gas industry. Any helpful comments are welcome. Thank you for your time

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Now you are in the right spot.  I'll be interested to hear what's going on in Shelby myself.  Based strictly on the lease terms you mention, IMO the royalty is too low for the acreage you own and the length of the primary lease term plus extension option.  The bonus is the least important term but with 275 acres it's worth negotiating also.  I'm sure other Shelby members would be interested in what company is making the offer.  They might have an opinion on whether this offer comes from an operator (a company that actually drills wells) or from an investor hoping to assign the lease to an operator and make a profit.

I'm waiting to find out which company or who it is making the offer as well. My uncle was just contacted about it yesterday. As soon as I hear more I'll share the info. I'd like to know as much as I can for negotiating as well.

It may take 24 hours or more for all the members to see the email notice and to make replies.  It's always best not to get in too much of a rush even though landmen often push for a quick decision.

That area is generally considered to be a poor rock quality for a shale well, but maybe they are looking for something conventional. 

Yes - Don't have land, but own some minerals in the general area.  It depends on which survey your land is in. There's a little bit of activity now - do you have a description of the land? - GR

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