I leased out 5 acres almost 3 years ago for 5,000 an acre. I know the leases have gone up since then and I’d like to know what some of you would be trying to get now. I am in block 13 section 271
Hi Carl…in the same boat…section 271. The lease is fixing to expire in March. Was with Rosetta, now Noble Energy. When the lease was signed, the bonus went for 10K pnma. I’m hoping to renew for 15K pnma. Keeping fingers crossed. Recently got an offer to sell for 20K pnma. Not interested in selling. Good luck.
Can’t figure out why they are letting the leases lapse??? That section is in a great spot with one well close by producing over a million barrels cumulative and still cranking out over 1000 barrels a day! Primexx Operating is drilling 2 new horizontals about a mile away from y’alls property.
When leases are signed and bonuses paid, I understood that all they have to do is drill on the property . The lease is the time period they go into production. If they don’t, then the lease expires. Someone with a lot more knowledge could give more input. I know this area is a hot area. Hopefully someone can clarify.
Just make sure the lessee did not include an option to extend the lease for 2 years.
The issue with 270 and 271 is that there are a ton of small divided interests that make it difficult to put together a proposed lateral.
Forgot to mention that it is also in Block 13 section 271.
Following this. Our 3 year (2 year option to renew) will expire in February and haven’t received any indication that it will not. Still getting letters and phone calls with offers to buy but will hang in there and hope for another lease to come along with a bigger bonus than we agreed to (similar to Carl’s) 3 years ago!
If I’m you guys, I wouldn’t sell. They will not deplete your acreage with surrounding wells and eventually it will be some of the last remaining virgin acreage. Plus leasing every 3 years on 5 acres will pay out more than a 2MBO well.