We have the same offer for Block 4 Section 76.
David Archibald MacNaughton said:
This is very helpful to gain a perspective regarding lease offers in Reeves Co. I am also curious if there is anyone connected with this blog that has any property close to where my sister and I have our 80 acres. We are located in AB415 Section 69 Block 4. Any idea what kind of activity is happening in this area? I have been offerred $800 per acre with 25% rolaty for 3 yr term and will negotiate.
Hi. We've had an offer at $925, 25% royalty, 3 yrs. w/ additional 2 yr. extension, but it seems our landman is having trouble coming up with the money. I'm guessing he was trying to put together a package to sell to an operator. I'm not used to doing business that way. Our property is Relinquishment Act (GLO) school land, so we get half and the state gets half of whatever we're offered. Anyone have any land people you want to share with me? I'm ready to start shopping this deal rather than sitting and waiting for him to come up with the money. Thanks!
What is the block and section and amoount of acreage?
Blk. 71, Sec. 46, PSL - 250 acres
Results have been released for the Texas General Land Office - April 5, 2011 Oil and Gas Lease Sale.
This pdf lists the tracts: http://www.glo.texas.gov/what-we-do/energy-and-minerals/_documents/...
This pdf lists the results: http://www.glo.texas.gov/what-we-do/energy-and-minerals/_documents/...
Put the two together and you will have an eye-opener -- several eye-openers.
How about up to just over $6,000/acre in Reeves County! (in Block C-19)!
Wow!
Thanks for the info. A couple of the leases up for bid that were close to my property weren't bid on. But they are getting closer it looks like. Those are some impressive numbers.
Currently negotiating with Joey Barnes (landman at Clayton Williams). Seems to be an honest, straightforward fellow.
A K James said:
Does anyone have a name for someone at Clayton Williams?
Julia Watters said:
Julia Watters said:
Thanks for the information.
douglas pickard said:Our family has 120 a. in section 220 reeves county,texas offered 650.00 net a.1/4 royality.3 year term with option 2 years extention with same signing bonus offer. jan. 2011 offer by clayton williams oil co
Highly dependent on location. $1,000 to $5,000+ per acre.
25% royalty and a 3-yr term seems to be standard.
Refuse the 2-yr extension (their option, not yours) and specify inclusion of a Pugh clause.
For M A Smith–I own 114 acres in section 15 block 59–PSLSurvey–is it near your land? Thanks Aubrey Trayler
2014 update: Specific to Reeves County, we've experienced leases and $/ac ranging from $125-$750. It seems many of the O&G lease offers were high from 2010-2012 and it appears (IMO) that they may have over extended themselves in offering these high amounts. Today, were being offered on the lower of this range (obviously not impressed) and are debating acceptance now. We've gone round & round on contract negotiation, $ acceptance, you name it.
Does anyone know the current bonus and royalty for the area located around or near NW4 of SEction 2 Block C-9, A-5488 in the PSL Survey? We have located it on the GIS map and have a current lease offer. Thanks for any information.
Joyce - You should be able to get 3k at least. Cimarex paid us that much just north of you earlier this year. I'd ask for 4k and you'll probably wind up with $3500/acre. I've heard that Clayton Williams will only pay $1500 though. We also got 3k for acreage just east of you too.
Thank you Wade. We signed at $1,100/acre with a term that expires 3 years after initial term.