Seems just a little too good (fishy?) to me.     I suppose he (the oil man) even offered to have his good attorney buddy write up the closing/transfer documents too... so that it wouldn't cost you anything??    Also, I bet he will want to simultaneausly do a lease on the minerals??  That is where he wins, be careful!     

I like the title local "Oil Producer", that title spells shrewd to me. 

Sounds like a good enough deal but something don't smell right.   Ask yourself what does he gain out of all this??  Maybe I'm just being a little paranoid on this one?