USG Properties Haynesville LLC

I am in North Caddo and received a letter from the above company.  Has anyone had any dealings with them.  I have no knowledge of this business and am seeking advice.  We have less than an acre.

This is their offer:  Is this good or bad!  Help!

Our lease offer consists of one of two choices:

  1. $2000.00 per acre signing bonus with an 18.75% royalty, or
  2. $1500.00 per acre signing bonus with a 20% royalty

 

This offer is for a 3 year paid up lease with a 2 year extension at 2/3 of the initial bonus. Attached is an example of our lease form for your review.

Thanks

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Replies to This Discussion

Permalink Reply by Iris on June 1, 2024 at 10:14

Thank you, Les, interesting to know that property nearby and in same  unit is still looking to purchase or ?? new leases. When we leased 2years  and maybe  three months ago, gas was pricing high.  I opted for higher % but lower leasing bonus.  Since pricing went down from then I and we have received no royalties.  Now at my age I would have opted for more bonus and less royalties.  But that's me at my age.  There is a clause that will pay me (and other family) 1k an acre if they choose next year and the year after. Good luck on your 25% if that's what you want.  

Permalink Reply by Les on June 10, 2024 at 9:13

USG came up to 22.5% royalty on my 1-acre lot and I signed. Be curious if this suggests there will be drilling soon in this section.

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