We have been approached by an oil company to extend a lease for the above described sections. The offer is 2 year extension, ¼ royalty, 4 ,000 pnma. Thinking the lease bonus is below fair market value. Any ideas on this offer would be greatly appreciated.
Block and/or abstract number?
Hey Rick we are in 270 as well.... how long was your previous lease and for how much? Was there any activity?
JT 3 year, ¼ royalty , 2,000 pnma back in 2015.
and what do you attribute this to Mike..?
yes sir lucky #13 !
JT, It's probably a combination of many things, but I think it's mostly supply/demand, and the infusion of a lot of Wall Street money.
There is not a whole bunch of prime open acreage in Reeves. With the 2014 bust, a lot of companies picked up and went to the Permian creating a lot of competition. Additionally, a ton of cash was dumped into these companies to spend on gobbling up as much acreage as possible. With limited acreage to buy, and lots of money to spend, lease prices have gotten extremely high in certain areas that are worth pursuing. Northern Block 13 is a good area. As I understand it, the geology becomes risky the further South you move.
I am obviously conflicted out here, so I am going to back out of this thread- but anyone interested can add me as a friend and message me- I'll be as straight-forward as I can be considering I represent someone in these specific sections.
We have also been approached and getting offers by 2 different leasing/buying companies regarding our mineral rights. We are just holding out for the best offer.
We own 3.33 acres in the SE/4 of Section 136, Block 13, H&GN RR. Survey containing 160 acres more or less.
We have been offered up to $3000.00 per net mineral acre as a one-time signing bonus
a 3 year paid up oil and gas lease
and a 1/4 royalty on marketable oil and gas for the life of the well.
Sharon, this thread is the best bet for your answer. Sounds like you could try to get another 1-2k out of the leasing party.
Sharon, your property is about three miles to the southwest of ours. We are in Sec. 185. In late 2015, we leased our property for $2250 an acre. In late summer 2016, my SIL leased her part of that same property for something over $3000 an acre. The bonuses had gone up that much in those few months. Bonuses have only skyrocketed since then. That said, I do not know what your area is leasing for now. And, we had much more acreage to lease than you do. In your favor, it looks as if Primexx has permitted a well that ends right in your area of Section 136, so there is definitely something happening near you. Keep in mind that the bonus and percentage are just the beginning of a good lease. The devil is really in the details. Best luck!
I believe you are in the Apache High region that Apache announced last year. They had been acquiring leases in the $850/nma for some time before that. They are digging a well in Sec 166, Blk 13, and if it hits, your number is probably low.
Dealing with a family emergency right now. Wanted to let you know I am not ignoring you. Will message you for more info on leasing 270/271. Have over 6 acres combined btw.
How many acres do you own? Thanks.
About 80 acres in several sections. not large, but that shouldn't be a factor in bonuses.
Ok agreed to a two year extension for 10k an acre. Otherwise same provisions in the lease and addendum. ¼ royalty, two year lease.
We did a 3 year, no renewal, on our end early in 2017 for $7500/nma.
Just an FYI.
I have Section 265 Blk 13 H&GN RR Survey Just signed a great bonus for a 2 year extension..
But, it depends on the Survey description info included. Section 270 Blk 13 is not enough information
I'm negotiating a lease now in Section 265 (only 4 nma). What kind of signing bonus are we talking about?
I only had 3.3 acres, but got $12,000 per acre bonus