Last week my sister was contacted by someone interested in leasing our acres in Block C-18, Section 5. She couldn’t remember the company name, but I am waiting to hear from them. What is going lease rate in this area now? (BHP let the 2-year extension expire last summer)
Thank you!
Lea
I received Lease Offer last week for our mineral acres in Block C-18 Section 5 NW/4N/w/4 from SHAW Interests Inc (Midland) representing MDC Reeves Energy LLC. They’re offering $1,000 per nma for 3 yrs, and 2 yr option, 3/16 royalty. I think both are too low. I know 4/16 (25%) is the norm.
What lease price per acre are others getting around the area? Thank you for your input!
Lea, I also have a mineral interest in Section 5, Block C-18. The present lease (which a percentage of was conveyed to MDC) expires this December, and I am also receiving an offer from MDC. Whether they will include the other present leaseholders is unclear. The landman has not made a definite offer yet as his title and other info are not accurate, so I have delayed any dealings. You are correct in that the going royalty is 25%. I cannot speak to the $1,000 bonus; like you, I do not know what the amount should be for that area. Does anyone out there know of any other companies leasing in the area or what a comparative bonus would be? Good luck, Lea, and please let’s compare our info on this great bog.
Lea, Have you heard anything from MDC lately? I have not! I wonder if they lost interest or are trying to let us reconsider their first offer. Good luck. L C
Hi L.C. Hailey,
I am working with attorney Wade Caldwell. Asking $3,500 per NMA & 25% royalty.
They had “incorrect” information on their initial lease to us, off by 1 acre each to me & my sister.
I haven’t heard back from Julie Tate yet. But we know how many acres our mother inherited. Her dad (my grandfather) has 16 acres of Section 5 in Block C-18.
I’m not in any hurry. Their offer was way too low.
Lea, thanks very much for the info. The MDC landman also had my chain of title and the NMA incorrect. I do not have a lot of faith in these people. I have not heard back from them lately. I’m also not in any hurry. Let’s keep each other posted here. Good luck.
Hi, if you want to connect as friends on this forum, it might be easier to communicate.
I received an email from SHAW/MDC today. They are willing to meet the $3,500 NMA, but their landman still has our acreage off by 1 acre.
We got an offer there for 2500/net ac + 25% royalty.
How might I find out what companies are leasing in Reeves?
What seems to be going rates and what companies or brokers are offering? Thanks