I've found out through internet searches that bonuses in Reeves Co. are as high as $1,500 to $2,000 per acre with 25% royalty for new leases. Delaware Basin wants to extend a lease with me that ends next month. Three years ago, they leased these minerals for $300 per acre and 20% royalty. Now they are offering $300 for 1 year or $400 for 2 years. I've told the landman what I've read/heard about current market rates, and he sort of laughed and said that they could do the 25% royalty, but that the highest they've paid is $850 per acre. He implied that, since they control so much of the land around my land, they aren't really subject to what others might be paying. My acreage is in sections 1, 2, 11 and 12, block c5, PSL Survey, which is right in the middle of the Lyda Family ranch that was recently purchased by Delaware (???), or so I'm told.
So now I have my floor of $850/acre and 25% royalty (I think), but I need some help on a few items:
- How can I determine the location of the acreage that is getting top dollar ($1,500-$2,000/acre)?
- Is it advisable to not negotiate with Delaware until the lease is expired (next month) and simply try to sign a new lease?
- Most importantly, if I shop my minerals around to other companies, could I possibly get more bonus money? I'm not sure I understand why another company would lease my minerals in the middle of all this acreage that is already leased by Delaware.