I just received a lease offer of $2,000.00/acre. Does anyone know what the current singing bonuses are going for in this area? Thanks!
Chris,
You'll be able to command a higher price than the $2,000 per acre you have been offered. I'd be happy to discuss further and answer any other questions you may have. I work here in Midland, TX and am very familiar with this area and the going rates.
CHRIS,
A major area operator has a permit to drill a spraberry H well with a 10,000' h leg crossing your portion of 37 so this will definitely be the last lease you sign for this ground. Far more important than the lease bonus is the measurement and payment of royalties and unitization of your small parcel in a 1280 acre unit. I would only deal directly with he operator on this one and at a price that will keep you in as many as 12+ wells not just 2 or 3.
Protect your upside. I'm involved in acreage a few miles north with sales at well over $40K/nma for 8/8 interest in similar drilling circumstances.
Reagan County is not for the faint of heart. Everybody wants a piece. I've had 18 bidders on one parcel in the past 18 months with each "able to beat the best offer".
Gary L Hutchinson
Minerals Managment