Asking Bonus Rate

Any idea on what a good asking bonus rate per acre lease would be? Section 15 Township 23S, Range 26E Eddy County, NM

25% royalty included.

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Do you own a large chunk or a small portion? If you have only minimal interest, its hard to get much higher than what is offered. Whereas if you own a larger chunk, they are more willing to work with you.

I honestly don’t know. I’d guess a good price is between $5k-10k an NMA. Only because you must be in the E2 and Earthstone is planning on drilling wells there.

But again, it’s NM. If you reject their lease offer they hold all the cards on force pooling. I’d be glad it’s 25% royalty and just do your best on bonus.

I’m wondering if you would be willing to give me your impression of a bid for sale of our 10 NMAs (15 NRAs given our 3/16 royalty) , in Eddy County. My sister and I are the owners. The location is T22S, R27E, Section 7 The price offered is 100K, or $6,600 per NRA.

Thanks! Eric Blair

That’s not unreasonable IMO. I’d ask for more. Nothing crazy, but I’d guess you could get another $10-20k. Maybe not.

SPC finally has a rig and is drilling in Section 5. So reasonable chance that you would see at least a well or two there in the next 2-5 years. But they also have gone a long time without doing anything. And you kinda need 2 wells+ to beat $6.6k/nra.

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Thank you! I really appreciate your input!