I am sure that this is a common situation but...My father was contacted by landman regarding 45 acres of mineral rights in Reeves County that he did not know he owned. From what I am reading in the forum, the lease offer seems low ($160 an acre to lease). I looked on the RRC public viewer and I see a lot of wells northwest and west of his lot, but not a lot of activity in his block yet. What steps do I take to see if it is a good deal or not?
Bill,
Can you post the Section, Block and Abstract # of these minerals. $160 an acre anywhere in Reeves County is an insult. I'm sure your dad can do a lot better than that.
Clint Liles
Depending on location and circumstances, Reeves rates are anywhere from $1500-10,000 per acre.
Hi Bill!
Wade Caldwell is a very experienced Oil and Gas Attorney and is correct in what he says about Lease Bonus Rates in Reeves County. As Clint Liles wrote, $160 an acre is an insult.
It sounds to me like all that guy is going to do is turn around and sell (flip) the lease for $1600 an acre (or more), making himself huge profit.
Clint and I can both provide you with maps and data regarding activities around your Father's 45 acres. Please post the legal description.
If you want to provide us with the information privately, then click on our names where they show up in BLUE and send us a message. We can each communicate privately with you that way.
Hope this helps -
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas
Thank you very much Charles, Clint, and Wade. Your expertise has been very helpful. Thanksgiving dinner conversationjust got very interesting. I will definitely get in touch to discuss.
Agreed. Almost anywhere in Reeves should bring at least $1000/net mineral acre, and location can take it much higher