Received an offer to lease. Looks like lots of vintage vertical wells to the east and horizontal activity to the west. Feel like a low offer at only $2500/ac. My acreage is in Section 9, Block C23, PSL Survey, Winkler Co., TX
Someone taking a chance on the edge of the basin. Faults with 2000’ of throw in the area as well as multiple Horst and graven structures. Drilling across these faults can water you out and the edge of the basin provides for a ton of H2S so you will get 0 for your gas. All that to say, I’d take a decent price on my lease if it’s open. That’s another snafu is breaking or drilling through 100 year old vintage HBP stuff that is owned by the majors.
Hope whoever leases and drills this area has some really good 3D seismic data - for all the reasons you have described
Section 9 is right on the edge of the Central Basin Platform (the shallower vertical wells and section to the east) and the deeper, Hz well prone Delaware Basin to the west. One literally “falls off the cliff” going from east to west.
The closest Hz well to Section 9 is about 1-mile to the SW / Matador Howell 1H. This 2018 completion has produced about 2.5 BCF and 101 MBO and is still making about 700 MCF & 25 BC per day.
The “gap” between the dense vertical wells / Central Basin Platform and this Matador Howell area (about 1-2 miles) is complex and problematic as to its geology and continuity.
Getting leased and seeing a well drilled in this complicated area is the end goal. With that being said, I would personally say that $2500 per acre for lease bonus is good number. Get highest royalty (that is where the big money is) plus a cost-free lease are just as valuable as the bonus