Newbie here...I posted this as a new discussion and no one has answered my questions. I now realize I should have posted it here.
Has Reeves County become a hot zone?
Does anyone know the going rate for signing bonus, royalty %, and term in our area?
We inherited mineral rights in Reeves County that consist of 105 acres described as Lots 4, 5, 6, 7, 10, 11, 12, 15, 16, 17, 18, 25, 26, 31, 32, 33, 36, 37, 38, Section 38, Block I, H&GN RRCo.Survey Abst A-2370
The land was leased at the time we inherited it and before the estate was finalized the estate received a check (late) from Anadarko extending the lease another 2 yrs. Ending in Sept. 2015.
Last month we received a offer dated Sept. 25th from a Landman with Acadian Land Services on behalf of SWEPI LP, a subsidiary of Shell (nowhere is Anadarco mentioned).
His offer: Until October 15th (we don't see what the rush is, the current lease is not up for a year)
$3100 x acre
25% royalty
3 years Primary term
We went back telling him, first we needed proof he was representing Anadarko. Second we liked the sound of $3500 x acre and if they couldn't do that maybe they could raise the royalty to 5/16%. Third we feel the lease is too long (considering the current lease with extension is for 5 yrs, and 4 have passed with no drilling). Actually Anadarko has held it since 2005.
Following this he emailed a large package of legal stuff to prove Shell was now working with Anadarko. Anadarko was not mentioned in the papers anywhere.
We called Anadarko and they said yes they had gone in with Shell on some leases but she really couldn't say ours was one of them at the time. She asked why we just didn't do a top lease with them. We told her that sounded good to us. She is having their Reeves County guy draw it up. We should hear from him within the next couple of days.
Thank you for any help, The Slacks