MIKE MORGAN
of morganleetonpc.com
Received opening offer today to purchase our interest in Block 2 for 50k per nma. Not selling, but interesting data point. In addition, Block 4 lease bonuses are reaching 10-12k per nma. These are substantial increases. Oil prices have moved up, but it seems there are other factors such as improved well performance with newer completion techniques.
Does anybody know about what minerals are leasing for in block 13 section 156
Mr. Crow,
This is a good area of the county. In my opinion, it would be fairly easy to get a lease offer for at least $8k per nma here. After running a quick lease check in this section, it appears you leased back in 2014 to Clayton Williams (now Noble). Your lease was amended/extended in 2016 and does not expire till 2019.
Thank you very much it's January 2019 just get an idea if they wanted to renew it thank you so much
M.A. Smith, I just saw your message about our respective acreages in Block 59. We had a number of ātire-kickersā who I believe were shot-gunning the area, but nothing came of them and we are still unleased. Have you leased your acreage yet?
We received an offer to purchase 5 nma in Block 50T7S Section 34 (T&P RR CO/Newell, WR) for 10K per nma. The original offer assumed a 12.5% effective royalty rate, but did not increase when the prospective purchaser learned it was currently unleased. Does that sound right?
Hi Tom,
No lease yet ā just the tire-kickers you mentioned.
Not sure if this is pertinent to you or not, but we own 5 nma in Lots 3 & 4, Block 16, Section 266, Section 13, H&GN RR CO Survey. We are currently negotiating a lease for that property, and the current bonus offer is $12K/nma, with 1/4 royalty. We leased approximately 2 nma in Section 222, Block 13, H&GN RR Co Survey last year for $3K/nma, also with 1/4 royalty. The operator has since drilled on that property, but we have not yet received any royalties.
The point of my post, is that I, personally, would never sell my mineral rights. I have had relatives (cousins) that did so and were extremely sorry in the end. Unfortunately, I did not know they were going to sell, or I would have bought them myself for a 10% premium over whatever they were offered.
There is not a Block 16 in Reeves County. Are you sure that is correct legal description or have a Volume/Page Deed reference that shows property description?
I have 1.25 acres in Section 256. Rosetta wants a two year extension at $5k an acre. Can anyone inform me what is FMV?
Hi, Gary. Is that in Blk 13? Linton
Lisa Hudson (May 29th) -
No, that does not sound right. You should consider cutting bait with whoever made you that offer.
I can tell you that and I havenāt even looked your property up yet.
Grady Dickens (June 29th) -
I am not familiar with what an FMV might be. Can you tell us what context the initials are being used in? Post the document or letter?
Yes blk 13, and it is 5 acresā¦1.25 netā¦which I assume is 25% royalry x 5.
FMV means fair market value
More likely you own 1.5 net acres in a 5 acre tract. You own 30% of 5 acres = 0.30 X 5 = 1.5 net mineral acres. Any bonus will be paid on 1.5 acres. Other people own 70% of the 5 acres.
Might contact Charles Gross the land owner of Block 13, sections 153 and 154. Mercedes Cattle Company. Heās on this forum.
Primexx just drilled a horizontal well on the north west corner of his section 153.
Great reply!
Inherited Royalties from Section 10, Block C-18 in Reeves County. Looks like MDC is working on a title opinion and DOās for a new well.
Spoke to MDC Energy briefly and havenāt been able to get them to return my call. Anyone else seen Division Orders or activity from them?
Thanks in advance!