folks, I’m looking for the latest BPA ranges in Reeves County. Lease would be for 25% interest. Specifically in Section 26 Block 50, Township 7 South. I know it’s hard to get specific, but any steering direction would be helpful. Got an offer that seems low to me based on the $3K-$10K numbers I’ve seen in other producing areas. Thanks in advance.
Which abstract # are you? It looks like there are drilled (but not completed) wells operated by Forge Energy in that section. When you say “BPA” you mean lease bonus per acre, correct?
I don’t have an abstract. Forge and their landman quoted “NE/4 and E/2 of NW/4 of Section 26, Block 50, Township 7 South, T&P Ry. Co. Survey, Reeves Co, TX”. Yes ma’am, I mean to say bonus per acre at 1/4 (vice 1/5 or other).
OK, so it looks like there is a drilled-but-not-completed well going through that described acreage. Here’s my logic on this one: If Forge is the one trying to lease you, then that means they’re willing to spend money in this section still (plans change; a drilled well doesn’t always mean someone plans to complete it). If they’re willing to spend money on leasing, then they must be wanting to complete the well. Which means they have to try to lease your acreage. You should be in a good position to negotiate.
But the way you word your question…they’re under $3k/nma?
Did you know you about this mineral interest prior to their contact with you? Has anyone else tried to lease it, such as in 2018-2019? I find it odd it’s still unleased, unless they couldn’t find you, or the prior operator (Flat Creek Resources) missed some owners in their title opinion.
Tracy - yes under $3K/nma bonus. No, not aware. It was Flat Creek, but unfinished. Then Forge and they desire to complete the well. I’m through initial discussions, sounds like $1K - $1.5K is the going rate for this area.