Use this post to share and discuss your lease offers. The more we know about what is being offered the better decisions we'll all make. Share your bonus, royalty rate, and any other provisions you were able to negotiate.
Regards,
TC -- I'm stumped... where is BLK 39? Thanks -- Later -- Buzz
Thank you very much for your reply. I am over my head so need more help. Can you give me more background on how sure we are about the reserves and can you assist me in projecting conservative case for 60 nma?
Pet peave.....I wish posters would add the distance and direction from Pecos, Orla, Barstow, etc.
Please!!!
CW, friend request sent to you. Please accept and I'll PM you.
My family has had a property near the Pecos river in section 2 block 2 of Reeves County for some years now. We have been approached by a landman to lease the property as Anadarko will be or may already have started drilling a horizontal well nearby. I was wondering if anyone else had land in that area and what lease terms you might have negotiated. Their initial offer is $1500/acre and 25% of the minerals after expenses. Are there other terms we should be sure to ask for? We would appreciate any information you’re willing to share.
Pat - We have minerals in Block 2, Sect 2 that is leased and Anadarko is in the process putting in a well. We did not lease to Anadarko but I believe our lease was assigned to Anadarko. We received $2500 per nma for 3 years and 25% royalty and no expenses deducted except limited transportation costs. We worked with Wade Caldwell as our attorney and I would recommend him.
Our family recently received an offer on approximately 15 NMA in the SE/4 of Section 69, Block 4 of the H&GN RR Co. Survey. Terms are 3 years, 25% royalty, $3,000 bonus per NMA. It seems like the bonus offer is pretty good for the times. What are some others’ thoughts? Also, does anyone know anything about that particular area? It looks to be close to some great wells but nothing too good in the immediate area. Thanks for anyone’s help!
Justin, My siblings and I have 80 acres in that 1/2 section, and our cousins have most of the western half. We got a very good lease last year with a 2 year guarantee to drill clause. That 2 years will be coming up this summer. Our lease with Arris has recently been transferred to Silverback. There are 3 good wells within 200 yards of the east section line of that section, so I believe it is really ripe for drilling. You should be able to get $3,500, for your acres, but don't wait too long. Please keep in touch if you get more details
Tommy Beauchamp
I have 50 minerals acres Sec 20 Blk 2.. Lease is up next May... What is a fair bonus now days?
Jack; this is real strange. Just above your message I responded to Justin Pinkston about having some minerals in the same section he was inquiring about; now you ask about another section that we have minerals on - sec. 20 blk. 2. Our lease comes up next June and I have already had a call offering $5,500 NMA. However, he has not responded with a written offer when I told him that we were not interested in a top-lease. That gives you an idea as to what to shoot for. And don't accept a top-lease.
Tommy
Sorry I see that I should have provided the direction which is approx. 13.5 miles SE from Orla.
Is Wade in the Pecos area?
Thanks Tommy, What makes a top lease undesirable? Also, do you know of any drilling activity in this area?
Thanks again, Jack
When you sign a top lease, you cut out all other bidders
Tommy
Thanks Tommy! We settled on $3,500 per nma. I’ll let you know if I hear any further details on the area in the future.
good job
The flip side of a top lease is that it can force the current lessee to drill or give up the lease. If the terms on the top lease are good enough, I am not so sure it is a bad idea. Also, you can pocket some of the top lease money if the current lessee drills to keep the lease.
Want to let everyone know that we just leased with CWEI on our Block 13, Section 185 property for $2250 an acre, 25%, 3 years, and some better language than was in our earlier lease with them. Back in early June, CWEI offered us $1000 an acre, 25%, and an extension of our original lease - the exact terms we got from them in 2013, before some pretty nice wells were drilled on sections just south of us. We want to thank Wade Caldwell for negotiating this new lease for us! He did a great job and we are very grateful. We highly recommend him. BTW, our first lease with CWEI expires in January.
Hmmmn.....makes me wonder if CWEI is busting their tail, trying to keep their acreage together to make the rumored deal with COG, to their east??? My tract in Sect. 300 expires in August, so it remains of high interest. Thanks for sharing!!!