That is incredibly low for 17.78 NMA’s in that area. Plus Centennial look at the acquisitions that they have made in the Midland and Delaware Basin. You are getting the first rounds of the low ball landmen and leasehounds. Without getting into specifics… NMA wise it is worth exponentially more.
I own mineral interest approximately 7 miles northeast of Toyah. We have an existing lease which will expire shortly. Any news of new leases in this area? Thanks for any info.
KAT,
It would help if you give the exact location like Section, block and/or Abstract number.
Thanks,
Clint,
The legal description is Block: SF, Tract: 1, AB-538 BLK SF Section 1 RE Montgomery. It doesn’t have a section number, but is described as R.E. Montgomery. It’s actually northwest of Toyah (not northeast). I’ve added a couple of screenshots from the TRC map to show the location.
Thanks,
KAT,
The last activity I find in the area of your minerals is to the South about 3 miles. Cimarex has an approved permit (March 2017) for a wildcat well (API 389-35840) in Section 20/Block 70.
Link to Wildcat well (API 389-35840:
COG has numerous horizontal wells in the area but apparently they are shut-in. Am not finding any production data on those wells. Most of those wells are drilled into the ‘Shale’ formation. As far as leases in the area possibly someone else that has a subscription to Drillinginfo.com or some other subscription will chime in.
GIS Map of Reeves County A-538 and surrounding area:
CLICK ON MAP TO ENLARGE
Clint Liles
KAT,
Use this link and sign up (Free) for ‘Lease Alert’ that includes Reeves County.
Clint Liles
Lease Alert for Reeves County/233 records/July 18, 2017:
(Give it time to load on your computer)
Clint Liles
Travis, do you think the gas gathering line running through your Section 44 made a difference in acquiring such a good lease rate? I have a line near too and was thinking of possible negotiation strategies for my next lease. Thank you for sharing any advice!
Apache also sold our interests to Parsley Energy. Am now receiving phone calls from just about everyone. Do you know if Parsley intends to drill more wells on your property and if so, when?
Travis - we recently signed a lease for $8000 per nma (about 5 miles NW of Pecos) in the ballpark of the $9000 you received.
Thanks for the update! That sounds like you got a great opportunity. Can you say who with?
I received a lease offer for $1,000.00 for acreage in Block 13 Section 229. These minerals are on the south side of I-10. There are some drilling permits for Apache in Block 13 Section 166 and Section 172 close by. Checking on what bonuses are being paid down there. I have heard $3,000.00 to $6,000.00.
$6000. 4 miles due north of you.
Anyone know of any activity going on in Section 8, Block 55, Township 4? Curious to know if anyone is drilling, pipelines, pad sites, etc. Also what is the going rate per acre being offered? Would appreciate any and all information. Thanks,
Louise
There was a permit back in 2014. Never got drilled, and nothing since. Going rate to lease or sell?
There was a permit back in 2014. Never got drilled, and nothing since. Going rate to lease or sell?
Cole,
I was just wondering about the leases and what they are offering. I would be interested in the amount for selling also.
I thank you for your speedy reply.
Louise
Do you know which company offered that amount?
Has anyone heard of a company wanting to put a pad on the edge of your land? What gives with wanting to put a pad on the line of your land? Anyone know of the advantages of such? Just wondering, thanks for any information.
Louise
As I understand it, an operator can begin a well outside of their lease area so the turn from vertical to horizontal is made before entering the leased area. This maximizes the horizontal lateral to produce hydrocarbons within the bounds of the leased area. There is no production from the land during the turn so no lease is required, only permission from the owner of the surface estate.