Lease rates in Lubbock County?

Anyone hear of KEW Drilling? Any idea what the market value is for Oil and Gas Lease in Lubbock County. Been offered $200.00 an acre with 3/16 royalty on 3 year term in a paid up lease on 640 acres. Any help would be greatly appreciated. Thank you.

There are a couple of brief comments related to Kew Drilling (out of Dallas) in neighboring Hockley County. Look for Lease Prices in Hockley County in the General Discussion Forum. It would be of interest to know where your property is - if it is in the southwestern part of the county and part of the big wave of leasing of Wolfberry wells, or somewhere else in the county.

Thank you I will check out the Hockley County Posts. Not sure exactly where the land is. The legal description is All of Section 29 Block D-5, E.L. & R.R. Railway Survey if that helps.

This is in the Shallowater area - northwest of Lubbock, about half way to Anton.

Bryan Nicholson said:

Thank you I will check out the Hockley County Posts. Not sure exactly where the land is. The legal description is All of Section 29 Block D-5, E.L. & R.R. Railway Survey if that helps.

Thanks. Any idea what people are getting that area? This is our first experience with this and just want to make sure it is a fair price.

JW Anderson said:

This is in the Shallowater area - northwest of Lubbock, about half way to Anton.

Bryan Nicholson said:
Thank you I will check out the Hockley County Posts. Not sure exactly where the land is. The legal description is All of Section 29 Block D-5, E.L. & R.R. Railway Survey if that helps.

Well, if there is oil or gas there, the royalty is more important usually than the bonus money in the long term. 3/16 is OK, 1/5 is good, and 1/4 is great. This would be my priority - to get more royalty. As royalty goes up, bonus money goes down. But in general, you might get $200 to $300 per acre in this area. You could probably get 1/5. If they REALLY want it, you can get 1/4. As you will read in many places on this forum, the oil and gas lease is always slanted toward you-know-who. You need a lawyer to add a good addendum for things like: 1) a GOOD depth clause 2) ensuring that you receive full price and are are not charged production expenses for processing, treating, compressing, etc 3) not warranting the title 4) etc.

Bryan Nicholson said:

Thanks. Any idea what people are getting that area? This is our first experience with this and just want to make sure it is a fair price.

JW Anderson said:
This is in the Shallowater area - northwest of Lubbock, about half way to Anton.

Bryan Nicholson said:
Thank you I will check out the Hockley County Posts. Not sure exactly where the land is. The legal description is All of Section 29 Block D-5, E.L. & R.R. Railway Survey if that helps.