I own some property and minerals with my brother and an uncle (25% each for me and brother, 50% for uncle) in Pike County. Our ownership is in a 276 acre piece.
The landman for the agency offered me $40 per acre on a 5 year lease, 1/6 royalty.
I know to ask for a pugh clause but I really do not have much of an idea what is the "fair" going rate in our country. I've seen $100 and $125 per acre and 1/6 or 3/16 across the border in the Felicianas.
Can anyone help out? Is $40 per acre fair bonus in Pike County right now? Do you think I could get $100/acre and 3/16?
I have seen higher prices on the MIssissippi side (not that they were higher than the Feliciana ones you quoted). Also back when they were doing some TMS leasing in that corner of MS a few years ago you could get a 1/5 and over $100, but they definitely wanted 5yrs in most cases.
Leasing for a specific price and royalty is always going to be a personal decision based on what you feel you need at the time. But $40 may be too light to tie up the land for 5 yrs. Who is the broker/leasing agency if you don't mind me asking?
Just for your info. I think that the last State of LA mineral lease sale was around $250 per acre bonus in East Feliciana. with 1/5 or 1/4 royalty. You might want to do some research by going back to the thread on the main board that had the info from the lease sale by Skip. Hope this helps. Good Luck on getting a good lease and a well.
It was a leasing agency where the guys were from the Lafayette area. Don't want to give out their name publicly out of respect until/if they start doing unethical stuff.
Will do. Thanks.
I told them we wouldn't take $40 and told them of offers in the Felicianas for $125 & 3/16 being pretty common. They countered with $75 & 1/6.
I'm just going to let them sit, I think.
There were no bids taken by the State on anything in the Felicianas. The closest was in Avoyelles by Anadarko. Those leases varied from a little over 150 to 175 an acre with 22.5% royalty. Hope this helps.
Oh, there are a lot of tracts coming up in the May auction that are in West Feliciana. I'll try to get the posting worked out by then and have them on line.