Andrews County

Oil and Gas Leasing Help
1
To help us better serve you, describe your specific interest or need:
My wife has 110 mineral acres in section 18 block A-33 PSL---
It seems 1/4 royalties is standard but the lease bonus is different track to track. What can she expect per acre for a three year lease and IF it starts producing what kind of dollar amount per month or per year would she expect in roylaties
2

Clay,

I've been dong a lot of work just across the line in Gaines County lately and have been exposed to situations in North Andrews. There are some extremely hot areas geologically there which explains the variance in bonuses. Also, the big boys like Exxon are active lately in the general area. Things are really good in the Permian Basin.

As to the royalty amount, Check the leases proposed for the right to unilaterally compromise the royalty. Most leases in the area don't do that but some are beginning to creep into the offers.

"Friend" me and I will see if your wire''s land is near areas that I'm familiar with and let you know.

3

Thanks Gary. I do not have a Face book account so I can not friend you. I did find out that the section is 10 miles North and four miles West of Andrews. I found some closed bid reports on the web that showed Apache bought at 317 an acre and Wind River Energy bought at 316 an acre pretty close to our section. My other question is royalties. If we have a qtr share and lets say a barrel of oil is 100 dollars does that mean we make 25 dollars on every barrel? Just trying to understand how all this mineral rights work before we sign any contract.

Thanks for your help.

Gary L. Hutchinson said:

Clay,

I've been dong a lot of work just across the line in Gaines County lately and have been exposed to situations in North Andrews. There are some extremely hot areas geologically there which explains the variance in bonuses. Also, the big boys like Exxon are active lately in the general area. Things are really good in the Permian Basin.

As to the royalty amount, Check the leases proposed for the right to unilaterally compromise the royalty. Most leases in the area don't do that but some are beginning to creep into the offers.

"Friend" me and I will see if your wire''s land is near areas that I'm familiar with and let you know.

Gary L. Hutchinson

Minerals Management