Anyone know what price leases have been going for in Dawson County…CGS has a lot of leases and at least two completed and producing horizontals…
Big county. You need to give a description as offers vary due to location.
I’m interested in the entire county…and fyi Dawson is at 143rd in Texas by size…
M_Barnes is correct. Lease Bonus varies dramatically based on location. I own minerals in 10 different areas in Dawson and have negotiated leases with CGS in the last three years. I can assure you that there is no single figure that someone can give you that would not be very misleading. There are many experienced people in this forum who can help you with your question if you give them a property description (Section, Block, Township, and/or Abstract #).
George…I appreciate your comment…and completely understand that…as of June I’ll have 48 years in the business as an exploration geologist…the reason I asked the question the way I did is twofold…1) I have a prospect in the county and I do not want to give any information as to location…2) all I need is a range to incorporate in my economics and to get an idea of how much money I need to put together to lease a substantial block…being +/- 10,000 acres…
it seems you would have insight into that…would appreciate your thought as to the range…
Thanks
Well in that case, $200 - $10,000 per NMA
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And thats a winner folks
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In the NW part of Dawson County, in Block M a few miles south of Welch, CGS was offering $500/nma to lease 18 months ago.
Tracy…may I ask the source of your comment?..any info helps…
thanks
Look at this thread or google “US lease price report”
Also, why not contact some land companies and ask what their expectations are as to average price per acre you would likely have to pay.
Would you mind commenting on Oxy’s leasing in Gaines county several years ago? See this map.
I’m an engineer/appraiser. It’s what I do. I use known/discovered plays and activity to model the current market value of the risked potential future income of the property, and you can use that to approximate a lease bonus that makes sense for that acreage. It’s the same method the operators use to determine how much they should invest in acreage. Since I have all of Dawson County modeled, I picked the high and the low of that range. NOTE: You could get lower than $200/nma somewhere in Dawson I’m 100% sure, but I wouldn’t budget on it if you’re trying to put together 10,000 of specific contiguous acreage, so I used the high-end of the lowest value acreage.
Also, a mid-sized Texas county is still over half the size of the entire state Rhode Island…
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Have you modeled Gaines county, and do you have any idea what Oxy was up to (per the linked thread above) as of a few years ago?
Tracy…thanks for your insight…it all helps…your modeling is interesting…I do something similar to determine whether it makes sense to drill for as specific reservoir…we should compare notes sometime…
John
I have some rights in that area. CGS contacted us almost two years ago but they didn’t follow up after we asked an attorney to represent us.
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