A landman from RK Pinson and Associates called us today wanting to lease minerals in section 36-13-18 Custer County. Does anyone have any idea what leases should bring in this area. His first offer was $200/Acre with 3/16, 3 yr lease. Sounds way too cheap to me.
The last lease we did on the same place was 4 years ago and the lease was at $1200.00/Acre
JD,
The demand in the area is down from 4 years ago as there are fewer speculators. I'm watching operators and prefer to lease to someone with a chance of funding and finding production. Sanguine has the hot hand right now followed by Primary then Apache. With Horizontal drilling encroaching on the area, I prefer to be patient and hope the area operators do well. One good well will increase operator demand. That is where the money will be.
Smaller acreage owners may take short term leases with very restrictive HBP provisions in favor of the owner.
Owners with large acreages will attract the good operators sooner or later. I'm obviously pro production and not so much bonus driven..
Gary L Hutchinson
Minerals Manaagment
Interesting that RK Pinson is still around. We leased to them in 2011 & they flipped the lease to Crow Creek, who sold it to Devon. The phone numbers & email address we had are no longer valid.........
Devon did drill on us. You might want to contact Devon to see if they are interested.
Gary L. Hutchinson said:
JD,
The demand in the area is down from 4 years ago as there are fewer speculators. I'm watching operators and prefer to lease to someone with a chance of funding and finding production. Sanguine has the hot hand right now followed by Primary then Apache. With Horizontal drilling encroaching on the area, I prefer to be patient and hope the area operators do well. One good well will increase operator demand. That is where the money will be.
Smaller acreage owners may take short term leases with very restrictive HBP provisions in favor of the owner.
Owners with large acreages will attract the good operators sooner or later. I'm obviously pro production and not so much bonus driven..
Gary L Hutchinson
Minerals Manaagment
JD Gepner said: I understand, thank you for your reply.
Gary L. Hutchinson said:JD,
The demand in the area is down from 4 years ago as there are fewer speculators. I'm watching operators and prefer to lease to someone with a chance of funding and finding production. Sanguine has the hot hand right now followed by Primary then Apache. With Horizontal drilling encroaching on the area, I prefer to be patient and hope the area operators do well. One good well will increase operator demand. That is where the money will be.
Smaller acreage owners may take short term leases with very restrictive HBP provisions in favor of the owner.
Owners with large acreages will attract the good operators sooner or later. I'm obviously pro production and not so much bonus driven..
Gary L Hutchinson
Minerals Manaagment