Wondering if anyone else is getting offers in this area and what is the going rate?
Leases in this area last month were $300/ac with 22.5% and 25% royalty
That’s good information. Thank you for your response.
What is the full block description? If you don’t mind saying. What part of Dawson County?
Sec 65,Block M,EL&RR survey--------------------------------------------
Got it. Your are in the Welch area. We are east of town. Old McCarty community.
Check out the map viewer on www.glo.texas.gov it is easier that using the texas railroad website, although I may just not know how to navigate that map well. by the looks of your survey, there are a lot of wells located around section 65 Blk M; I seriously think that $300 is a low ball offer. Just my opinion.
Sec. 65 block M is about 7 miles due north of Sec 77 and is much closer to the old Welch field and San Andres production. The huge increase in leasing between Sec 77 and the Welch field may indicate that the experts are betting that the San Andres can be extended more to the south,. I hope they are right. We had a Penn Reef well on our interest making 8 barrels a day(2800 barrels in 2003) that was shut down for maintenance in Jan 2004. And after 4 years of no production or returned phone calls, I mailed a complaint to the TRRC and after two letters to the operator, they were ordered to shut it down and plug which was done in 2008. I know of some $800 leases four yeas ago very close to us in 2014, but I also know that most of these leases were not extended to the two year option. Over the last four months I have seen the names of five companies leasing in surveys that border Sec 77 and one company had 7 leases in Sec 77. So I am waiting for my phone to ring.