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Lea County, NM - Oil & Gas Discussion

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Lea County, NM - Oil & Gas Discussion

Oil & gas discussion group for those interested in Lea County, NM. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.

Members: 149
Latest Activity: on Wednesday

Discussion Forum

Section 28 T15S R 37E

Started by Jim Taylor. Last reply by Jim Taylor Jun 9. 2 Replies

Has anyone had any leasing interest in this section? What terms have been offered?

Mineral Interests Lea

Started by Susan Drew. Last reply by Andrew Chase Lake May 1. 5 Replies

we have been offered$250 an acre for 3 year lease with 20% and 2 yr option in TWP 10S and very small interest in T25S.  Does anyone know other companies offering a higher lease amount?  ThanksContinue

Offer for an extension of lease for section 1 t19s, r34e

Started by Rick. Last reply by Susan Drew Apr 4. 10 Replies

Hi, this is my first post on this forum. I have been offered a two year extension on a lease I signed and negotiated in 2011. The oil company did drill a well and has a successful, producing oil and…Continue

Going rate for mineral leases in Lea County Sec. 28-11S-38E

Started by Roger Pugh Mar 27. 0 Replies

I'm new to the group and for the first time have been contacted about leasing my minerals in Lea county. These are in Sec. 28-11S-38E. Would appreciate any ideas on what is a fair lease amount per…Continue

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Comment by Bart Barton on Wednesday
Comment by Archie Smith on Monday

I am new to both New Mexico and to the lea county group.  I own the mineral interests in numerous small parcels in Lea Co that I need to fully evaluate. Can someone direct me to the state web site(s) where I can find the current and past drilling and production data for my properties.  Some are leased but most are not leased -- but I am receiving queries regarding leasing or selling.  I do not intend to do anything before I am able to get a hndle on what I have.  Thanks in advance for your assistance. Archie

Comment by J Joyce on June 8, 2017 at 2:36am
David,
Did you solicit lease offers? I've received one buy offer this year and one last year, but have no interest in selling. I am interested in leasing so am wondering if you or anyone else here has had any experience cold-contacting companies or landmen for lease offers.
My mineral is northeast of Lovington, T13S, R37E. I and two siblings own 100nma in sections 26 and 27.
Comment by Bart Barton on June 6, 2017 at 1:12pm

David, I once sold minerals in the Midland basin.  This was back in the day. I took the money and bought a lease for $40/ac.  Took a chance on some information I’d uncovered.  Sold the lease for $3000 ac two years later, while retaining 5% override.  

I think people fail to take into account the opportunity cost and the time value of money.  I know you get it, though.  

Comment by David Ammons on June 6, 2017 at 12:32pm

Gary,I am not selling as I considered before; only leasing. I referenced the purchase price just for a toss up information. 

Comment by William Douglas Archer on June 6, 2017 at 11:22am

Nothing better than dealing with the next generation.  Usually they are so excited about the money, they give the farm away.  Listen to Gary on this!

Also, 25% cost free royalty.  No modifications whatsoever to that.

Comment by Gary L. Hutchinson on June 6, 2017 at 11:09am

David, That is a terrible deal for the mineral owner.  Most leases are lob sided towards the lessee anyway, don't give up your upside by granting an option to purchase what little you have left.  Once your lease is drilled, your royalty dream may be worth well over $20K/acre.  

Along with never selling minerals, you should never give away your option to sell if necessary.  

Gary L Hutchinson 

Comment by David Ammons on June 6, 2017 at 10:46am

RE: 15.00 NMA in T26, S10,R36E

I am still working with my attorney to get probate from TX filed in Lea County so my two siblings and I can negotiate individually from my parent's estate. I have received a tentative lease offer for $2,500/acre bonus at 23% for 3 yrs with a 2 yr option or $7,000/acre purchase.  I am waiting on another lease offer.

Comment by Paula F on May 12, 2017 at 6:39am
You might want to reconsider selling your minerals. Most attorneys will tell you to NEVER, NEVER, EVER sell your minerals. I would talk to an attorney before you do anything. Especially if there is going to be some activity in that area.
Comment by Gary L. Hutchinson on May 11, 2017 at 6:39pm

Judy, picking up like a rocket to the moon.  Hang on.  

Gary Hutchinson

 

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