Lease offers - looking for ranges of offers

Has anyone near 7N 60W Section 22 had any lease offers recently? Ive had a couple different companies show interest over the last year and was curious if anyone else is leasing nearby. I haven’t leased since inheriting my mineral rights a couple years ago and I’m not sure how to go about finding a fair value for this area. I believe i have 120 net mineral acres, though I’m not entirely sure with the 50% interest wording on the mineral deed. Thanks in advance!

Welcome to the forum. We cannot help unless you add the state and county. It is better to post your question in the state mineral rights and county where your minerals are located so local folks can possibly give input.

Apologies! Its in Weld county, Colorado.

The deed has the gross acres, but if it is very old, then the passing to the next generations may fractionate it. The 50% interest wording may have already done the first cut.

I will move this over to Weld for you.

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Dear Ashley:

My family owns minerals in 7N60W Sections 14 and 15, directly N and NE of Section 22. Red Hawk Petroleum has leased folks within the year in those sections. You can look at the “memorandums of lease” in the Weld County Clerk and Recorder web site. You’ll need to create an account, but it is free. You can’t see the lease bonus amounts, but the names and addresses of the mineral owners who recently leased are there. Sections 14 and 15 are somewhat “fringe” but there is a permit application for a well on Section 14. Section 22 is further “fringe”, from what I understand. You’ll want to get on and familiarize yourself with the Colorado Energy and Carbon Management Commission Interactive Map

I wish we could message confidentially, but I don’t see a way.

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Thank you, Rachel! I appreciate the info you’ve given me, I’ll do some research on that. A company representing Red Hawk reached out to me last year with an offer, but Im still working on finding a lawyer to help with reviewing offers before i accept one. Thank you, again!

Hi. I would steer clear of Red Hawk if I were you. Do your own research but we had problems with them from the start. Terrible communications, and difficult to get a hold of anyone. Thankfully they only have rights to one of our sections. The rest we have leased to other companies.

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Thanks for the heads up! Have you had any experience with TPG Energy or Bison? I have had offers from both and am leaning towards leasing to TPG Energy.

Dear Barry: Oh, dear. I am very sorry to hear that about Red Hawk. They have a development plan and new permit application for a section we have rights in. Our lease just expired and we were going to ask them if they wanted to lease us. This throws a wrench in things. I wish there was a way to message each other outside this public forum.

We are in Weld county and were just offered a 2k per acre signing fee plus 20%.

Amy: Can you please give us a Township Range and Section? And by which company?

It is 27 7N 63W and company is Stone Briar Energy. We have an excellent lady in Greeley who negotiates and reviews the leases for us but I really think the offer is a good one.

Hi Amy. Are you willing to share the name of your contact in Greeley? Thanks.

Sure, although we left her a message and haven’t heard back. It is Zeren Land Services

Thank you so much, Amy. Hope you hear back from her.

Dear Ashley: Are you willing to share what bonus amount/s per acre you have been offered?

Hi Rachel,

I received a couple offers for $250 per acre for a 3/2 term with an 18.75% royalty, then was able to get an offer for $400 per acre for the same term and royalty percentage. I havent accepted any offers yet though. After speaking with a landman, she recommended waiting for a bit as there is interest popping up in the area my rights are located in, and she thinks values will increase over the next year or two.

Thank you for letting us know, Ashley. That sounds low to me. Best Wishes!

I have a good friend who got an offer to lease, but the broker wanted nearly 90 days to run title and pay? Is that unusual in Weld County? I am in the industry, and I have never seen an offer like that?