Was just offered $8000 pnma for three years, no extension and 25% royalty. Has anyone got anything higher or lower? And, under what terms?
There should be a Survey included in your BLK 13 Section 247 _____________ like PSL
My leases in the last 7 months were for $12K 3 year lease no option to extend and 25% royalty.
I held out for more and got it.
Each section is different. His property is not in the Delaware Basin area, so that’s why he might be offered less. Just because you’re being offered $12k doesn’t mean everyone else in the area is being offered the same.
Without knowing what the complete legal description is I can’t tell if it’s a similar area or not.
I’ve been offered $12K for several sections and $8K for other sections with less production.
I defer to Geologists, landmen and note the number of wells drilled in the ares. I also get sales
information at Sealed Bid Auctions. My comment to this member stands.
Thank you so much for your reply! That’s good information and I will use it in my counteroffer to the lease I have been offered. The land is in the Toyah Lake Prospect and is surrounded by many wells both producing and non-producing. I suspected the offer we got was on the low side. I feel that the terms and conditions stated in the lease are just as important as the bonus money offered. How do you get sealed bid information?
I have been told (in forum articles) that lease negotiations can be slow and tedious. I am not in any hurry and don’t need the money. I think of this process like fishing… drop a hook in the water and see what bites!
I’ve talked to Landmen in the Reeves County area. You can post also to ask members if they have knowledge of any sealed bids in your area.
Also, lease negotiations have not been slow or tedious for me. If I don’t like the Bonus offer, I wait until there’s more activity in the area. Reeves County is too hot to just settle. Remember, they tie you up for 3 years to whenever they stop drilling for 90 days or more. The Bonus is very important - the Lease and particulars I have an attorney handle and of course 3 yrs. 25% No Extension
Adam…His property IS in the Delaware Basin area. Everything west of the Pecos River through Reeves, Culberson, Hudspeth, Jeff Davis and Pecos counties ARE the Delaware Basin. They haven’t made up their minds to include Brewster and Presidio counties or call that another name sub basin.
ol’ Lawrence in Verhalen
His property is in the area that’s not going to have a lot if any play. That’s why he was offered only $8,000. I work in that area and I know where the good area is and his property was right outside it.
I’m in Block 13, Section 182 very close to him. I have two Noble Permian wells on this section holding it. One is a horizontal well, the other is a vertical well. There are 4 drilling rigs running within 5 miles of
me right now. 2 are drilling for Primexx, 1 for Oxy, and one for Centennial. I expect to see a lot more
drilling activity along this anticline. The middle of the barbell end of the anticline here is the Keiko State#1 (Noble Permian) a mile and quarter east of Hwy 17 and me. The other end of the barbell is
just on the west side of FM2903 junction with Ranch Road 3334. Primexx has drilled 4 wells along
RR3334 and CR330 on the west side of Hwy 17 so far…and have 6 more planned to drill in that area. Primexx is operating two rigs on Ivan Heard’s 2 sections a mile east of FM2448 that runs from
Hwy 17 to IH-10. Everything around here,including Mr. Johnston’s land is very lucrative for good oil and gas production…so I counsel him to wait…take an offer above $25,000 per NMA.
ol’ Lawrence in Verhalen
Your property is in the hot spot right now and his isn’t. Also, no one is paying $25k pnma and that’s even if you’re selling their rights. You’re are feeding him misinformation. I am trying to be honest with the guy and let him know where his property stands. I presented it to my brokerage and they didn’t even want to make an offer due to where his property was located.
Adam- You can sell minerals all day long in Reeves at $25,000 and higher if you have a 25% lease and its not mineral classified.
Just south of his property is very much a hot spot with Primexx and Noble is very hot just north of him
one section. Brokerage firms don’t have people out here in west Texas with expertise in where
the production zones are subsurface…so they aren’t qualified to give anyone good council…are YOU trying to low ball Mr. Johnston yourself? Is that the deal? What I told him about waiting for a $25,000/NMA offer or more still stands as my recommendation to him. If that burns you and your plans for his land…so be it…I’m not a diplomat or politician.
ol’ Lawrence in Verhalen
We didn’t even make him an offer on the property like I STATED in my last comment. I am a very honest leasing agent and I pride myself on that fact. I will never ever low ball someone or cheat them out of something. I have a GIS degree and I know where there is going to be the area with the most production in the area is. I’ve been doing GIS and title/leasing for several year in several States. NO ONE is going to pay $25k pnma in that area. All you are doing is feeding info that will burn him in the long run. The formation that everyone is looking to lease curves away from his property and that’s why like I said before we didn’t even entertain an offer to him. Offers for $12,000 that people are getting are in the areas that will have the higher payoff in the long run.
Yes, some people may have got $25k for their minerals, but where his property is he won’t get that. Like I’ve stated in several posts now, where he property is is out of the sweet spot. He will not get $25 to lease his property and I am surprised they offered him $8,000. I know of people being offered $6,000 close by his property. Not by me, but by others. We will not pay $25k for nma because there’s a chance of not making anything back on the deal.
I am an out of state owner of acerage in Reeves County, Pecos.
Would you be so kind as to let me know the richness of my land?
It is BLK:72, Track:12, AB:3844.
I thank-you for your knowledge.