Andrews County, TX - Oil & Gas Discussion archives

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

Does anyone have any information on current bonus offers and royalty offers in Andrews County? We have received an offer and not sure where to go from here…

We recently (about 8 months ago) negotiated a lease with a bonus (per acre) of $250. Our royalty is for 1/4th. Hope that helps you.

That is really helpful. Thank you so much. I wonder if it is the same company or different. Celeron is the one that contacted us… what about you? Our offer was definitely less that yours, so it is very helpful info. Do you live around there and if so, do you know if what you signed is “typical” for Andrews County?? Thanks so much.

Kimberly Paul and Polly Dross, where in Andrews County are you? I have fractional interests in 1600 gross acres in Sections 7, 9 and 12 Block 33 PSL. Would definitely be interested in leasing.

Scott Takacs. Did you have a comment for Andrews County? I received a forum email that you had posted a comment, but it's gone.

I received a mineral lease last week from LandSmith Petroleum. Their offer was a Bonus of $250 per net mineral acre,25% Royalty and a 3 year paid-up term. Can anyone tell me if this is on track with what is being offered in Andrews County? Thanks

We signed about a month or so ago with the exact terms that you outlined below J.A. We started at $150 per acre and 3/16ths royalty. We ended at $250 per acre bonus and 25%. Hope this helps you out.

You might check the Univ Lands website and look at the Sept 2011 land lease auction. Check the Andrews County tracts that were leased at auction to see if your minerals are close to the tracts leased. All tracts are leased for 5 years and carry a 25% royalty. It will give you an idea of the bonuses paid. You should not lease for less than 25% royalty.

Where in Andrews is the leasing occurring?

Go to and click on previous sales. Then click Sept, 2011. Andrews County has a lot on Univ Lands–they’re all over the county. If you know the section, block and survey Of your minerals I can tell you if anything leased in the sale that’s near your minerals.

Appears from lease sale that if your minerals are east of Andrews that they may lease for $1,500-$5,000/acre depending on location.

My minerals are about 15 miles NW of Andrews

Roy D. my mineral interest is in section 11, block a-44 of the public school land survey. I have no idea where in Andrews County that is, but if you know I would appreciate your help if you know about any lease activity in that area. Thanks

J.A. you are about three miles south east of Andrews. Abstracts 1473, 2310, 2326, and 2311 all make up Section 11 in PSL Block A44. The four abstracts contain 9 plugged oil wells. The last one plugged in 1985. Don’t know anything about leasing activity.

J.A. Give me a little time today and I think I can give you some info. You’re in a good spot.

J.A.–Your minerals are about 4 miles SW of the town of Andrews and about one mile south of Hwy 176 which runs due east out of Andrews to the town of Big Spring. Most of the Wolfberry(Spraberry/Wolfcamp) drilling is going on beginning about 5 miles due east of Andrews to the north and to the south of Hwy 176. Picture a rectangle standing on it’s end running north and south about 5 miles wide and about 10 miles tall with Hwy 176 bisecting the rectangle in the center. Your minerals are about one mile west of the west edge of the rectangle and one mile south of Hwy 176. You’re in the action. There are no producing wells real close but you are in the middle of the Wemac Field which is an old Wolcamp field that most of the wells have been plugged. The closest producing well is one mile east of your minerals and was drilled in 2002 and is still producing and is inside of the rectangle. And get this-- there are a total of 16 new wells that have been staked around this producing well. As far as your lease–you have to get 1/4 royalty minimum–and that’s the best you will be able to get. As far as lease bonus–I would say minimum $500-$800/acre if you get the 1/4 royalty. To give you a comparison–there is a Univ Lands block about 4-5 miles south of your minerals that tracts have been leased for $500 to $1,600 per acre in recent Univ Lands auctions. The more minerals you own in Section 11 the harder you can trade. The activity is coming your way. I am by no means an expert but have been watching this area for several years. My minerals are to the northeast of yours and are being drilled now. Yippee! And good luck!

Roy D. , thank you so much for the info. You have been such a help as I have very little knowledge of all this. These leases have such crazy wording in them, what do I need to look out for or should I worry about any of that? Thanks again!!!

Best advice I can give you is hire a knowledgeable attorney especially if you’re gonna get a nice bonus check. Leases can come back and bite you. If you don’t have many mineral acres to lease I’d be happy to tell you a few things to look for but You get what you pay for and you shouldn’t try to do it on the cheap if you or your family have a good many mineral acres… I ain’t no expert.

FYI–My siblings and I have about 5 acres in Andrews County—S/2 of Section 2, Block A-44, Public School Land Survey. From 2008 to 2011 we were under lease with Landsmith, receiving $200 per net acres as bonus, 1/4th royalty, and a 3-year term. Then in December 2010, we received an offer for a top lease from Red Willow (through Dixon Services). This lease was for 3-years, a $250 bonus, and 1/4th royalty. This is the lease we are now under. But this month we’ve received another lease request from LandSmith—with a $300 bonus, 1/4th royalty, and another 3 years. Needless to say, we couldn’t do this due to our current lease with Red Willow. But you can see the bonuses are rising. Anyone leasing in Andrews County should consider this.