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Ward County, TX - Oil & Gas Discussion

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Ward County, TX - Oil & Gas Discussion

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

Members: 232
Latest Activity: yesterday

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West Ward activity

Started by Dana Reel. Last reply by Dana Reel Sep 6. 7 Replies

I am wanting to know if anyone has heard what the going rate Per NMA  lease signing bonus is in the west Ward area? It is undeveloped and is a water track. Thank you and Blessings to all of Texas, we…Continue

SEND ME YOUR BLOCK/SECTION/SURVEY NAME AND I'LL SEND YOU A PICTURE OF WHERE YOUR PROPERTY IS!

Started by Linton Tomlin. Last reply by Linton Tomlin Aug 30. 106 Replies

I have a Ward County, Texas map on my wall, if you send me your block/section/survey, I'll take a picture and upload it here or send it to you at an e-mail address if you prefer.

Block 34, Section 147, H&TC survey

Started by jim goodman. Last reply by jim goodman Aug 20. 4 Replies

Anyone has sold or on verge of selling part or all minerals in this area? Thoughts on going price for HBP per net acre minerals and what company has been successful in acquiring same? We have between…Continue

Ward County TX Oil & Gas Permits

Started by Dave Thompson. Last reply by Clint Liles Aug 19. 483 Replies

Post, discuss and share information related to Ward County Oil & Gas permits in the replies below.Thank you to Clint Liles for championing the effort to keep us all up to date.Continue

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Comment by TennisDaze on August 2, 2017 at 5:07pm

Mike, Did you lease your minerals in Section 1?

Comment by Mike on July 28, 2017 at 9:38am

Anadarko didn't get 70% of the acreage. They're securing operatorship of 70% of the wells which were subject to the JV. Their WI/NRI remains the same. 

Comment by Kenneth H. Wiese on July 27, 2017 at 11:21pm

This is in response to Richard Kyle Miller's question posted yesterday.

A 25%, 3 year lease means:  1) the lessor (usually the mineral owner) is entitled to 1/4 of the value of all oil, gas and other minerals which may be produced and sold from under the surface of the land covered by the lease for as long as it is produced by the operator of the lease and,  2)  3 years refers to the "primary term" of the lease, i.e., the time frame from the effective date of the lease during which the lessee must drill a well before the lease expires.

$10,000.00 per net mineral acre is the "bonus money", i.e., the funds paid up front to the lessor/mineral owner to sign and enter into the lease.  For instance, if you own 100% of the minerals under a 100 acre lease, you own 100 net mineral acres and are paid 100 x $10,000.00 = $1,000,000.00.  If you and one other person each own 1/2 of the minerals under a 100 acre lease, then you own 50 net mineral acres and are paid 50 x $10,000.00 = $500,000.00.

Hope this was not too rudimentary an explanation.  Good luck!

Comment by Robert F. Seiler on July 26, 2017 at 12:35pm

Anadarko and SWEPI ended their JV.  Anadarko ended up with 70% of the acreage - they announced second quarter results.  

http://investors.anadarko.com/2017-07-24-Anadarko-Announces-Second-...

Comment by Richard Kyle Milner on July 26, 2017 at 11:57am

When you say $10,000per mineral acre for a 25%, 3 year year lease, explain.

Comment by Jack on July 16, 2017 at 3:03am

I agree with all those on if it is a lease for $10K and 25% royalty then sign immediately.   BUT BE CAREFUL, make sure you are not signing a document that in some legalese the provision says anything about a 25% lease and then anything that would indicate you selling your interest at $10K per NMA.  Make it clear the bonus is $10K per NMA in the lease at 25%.  That there is no conveyance of rights. 

Just be careful. Read it carefully and get a 2nd opinion from an attorney, landman, accountant, oilman, etc., and make sure what you would be leasing and not deeding any rights.

Comment by Kenneth H. Wiese on July 12, 2017 at 12:08am

Mike, I have to agree with John Goode re:  the the offer of $10,000.00 per net mineral acre for a 25%, 3 year lease.  That is a lot of bonus money, even with really good wells near to or offsetting you.  I was in a situation in Loving County earlier this year that sounds pretty similar to yours, negotiated $6,500.00 per net mineral acre and thought I did really well!

Best of luck to you!  Ken

Comment by Mike East on July 11, 2017 at 8:28pm

John, thank you and how well I know.

Comment by John Goode on July 11, 2017 at 8:26pm

If you are being offered anything close to $10k an acre, I would take the $ in run.  I was part of a group leasing in Ward County last year.  We paid $2k - $3k an acre and everyone was happy.  Don't be surprised if this all comes to an end even if it doesn't seem likely.  History repeats itself.  

Comment by Kenneth H. Wiese on July 11, 2017 at 7:28pm

Mike, I am familiar with PBEX LLC and am acquainted with the Chairman and the CEO (I believe they are brothers), although I've never do e business with them.  Last I knew they were out of Midland.  Both have multiple companies and business interest.  My recollection is that, at the time I met them several years ago, they were mainly mineral interest buyers, although I'm sure they owned working interests as well.  Unless things have changes, I'd be surprised if they did any drilling of the kind of horizontal wells we're talking about on your acreage.  As far as I know, they are reputable folks.  I think one of them had even been mayor of Midland at one time.  Hope this helps.

Best, Ken

 

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