I recently received an offer to lease property in Ward County, Texas. The indicated property is currently leased and producing. However, the offer indicates that they are interested in depths deeper than Wolfcamp. My research indicates approximations for appropriate bonuses and percentages but at the same time seem to say that the deeper depths are a different story. What is not said is whether the different story leans toward higher or lower numbers. Does anybody have some insight? All help is appreciated.
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What is the legal description in Ward County?
In this instance, a good idea would be to hire an oil and gas attorney. Congratulations on your new lease. I believe now especially in the Wolfcamp they are drilling to 20 to 25000 ft. Where before they were drilling up to 10 or 11000 feet. There appears to be layers that may turn out to be very profitable hence the deeper drills. Good luck moving forward.
There is interest in the Barnett / Woodford which is in early stages of development. Leasing in Block F and more central part of Block 34 closer to University Lands, as well as University Lands. Bosque recently filed completion report for King George 7705 WH with 2948 bbl/day. This well is in Block F.
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Battalion has Blk F if iam not mistaken. Do you agree with that assumption?
Hire an oil and gas attorney familiar with the area. Lots of moving pieces that you may or may not be aware of: competing companies willing to pay higher, offer competitive terms, etc. would be worth the legal fees in the long run.
Battalion has wells and leases in Block F, but so do a lot of other companies. You can search this out on the RRC GIS viewer and website to see companies.
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There are a limited number of companies leasing the Woodford play at this time. Few attorneys have the ability to market mineral leases. They are more useful in reviewing the lease form.
Just got back from the Super DUG conference and the deeper zones were part of a panel discussion. Several companies are quite interested. Deeper, hotter and higher pressure, so will be a more complex drilling and completion challenge. Leasing prices may not be as high as the Wolfcamp was.
The property is Section 63 Block 34. I am looking at an offer of $2500 / acre and 25%
No one is going horizontal at 20-25000’ especially in the Wolfcamp.
So, what are y’all’s thoughts on the offer? It says specifically all depths below the Wolfcamp.
I think you’re in great shape! Just having offers is great! I think that in my opinion you could get a lot more if you get a good oil and gas attorney to negotiate for you. Ward County is a very hot county and will be for awhile. I too have acreage near I 20 and the Pecos River and iam very bullish on what is going to happen in 27 and beyond.
It will almost assuredly be the Woodford. They’re capturing all rights below the wolfcamp, but most likely drilling the Woodford. Depending on where it’s at, it would be oil and gas or mainly gas.
We leased back in early 2025 to Pioneer. Our minerals are in Section 34 Block 34 and are all rights below 3,400 feet, so in essence a deep rights lease. We were told they were looking at the Woodford and Barnett. They offered $3,000 per acre and 1/4 royalty. We countered with $5,000 and 1/4 and they took it. You should be able to get more than their initial offer.
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Thank you, everyone, for the responses.
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