No completion report filed yet. Silverback doesn’t seem as quick on doing that since their sale to Centennial. Maybe Big Fundamental will be mentioned in Centennial’s 1st Qtr earnings call on May 11.
Thanks Dusty
Anyone know what are the lease/purchase rates in T&P Twp 7 Block 55 ?..about 5 miles south of Toyah. Have been getting offers regularly to lease/purchase, but don’t know what is the market rate? I’m sure there are “fishing” rates, “good” rates, and then “excellent” rates. Thanks in advance!
If that is the initial offer, there is probably more room to go up.
How many NMA’s?
Wow! That’s an impressive lease bonus, even with 1/2 going to the State. FYI, Cimarex had a permit approved 3/31/17 to drill in Block 70,section 20. 38935840.
Kevin, that 20 is off the SW corner of your section.
I have a small, undivided holding in PSL Block 70, Section 4, A-1615. I understand it is also subject to the Relinquishment Act so we only get a 1/2 split with the State. Can anyone give me a reasonable lease rate per nma? It’s a 3 year term with an option to renew for years 4 and 5.
Kevin, in January, Cimarex obtained a 2,160 acre lease from a big ranch in that area for $4,500/ac. Lease prices seemingly have increased since then, so there may be more on the table. If nobody else chimes in, you may try the forum sponsors to see what they’re witnessing in that area.
http://marketplace.mineralrightsforum.com/ad-category/minerals-mana…
The initial offer was $3,000 but it went up two days later to $5,500. I believe the company being represented is Jetta Permian.
My share of NMAs is a very small 5.333 acres.
Portions of Sections 5, 6, 19, 20 & 21, Block 70, PSL. $9,720,000 lease bonus. Every extra $1k/ac was $2.16 million. (half going to the state)
Current offer is $5,500.
Why does Wolfcamp Shale always send links to the sponsors. Are you affiliated with these sponsors?
Kevin, we have 520 acres (380nma) right next to you: PSL Block 70, Section 3. In March of 2014 we signed with Cimarex for $3000/acre and they just took the 2-year extension. Probably could have received more, but I wasn’t as savvy about requesting more like many of you here.
Wolfcamp Shale – do you know which sections are in the big Cimarex lease you spoke of below?
A brief update on what we are seeing in Reeves and the surrounding counties. Bonus rates have, on average, tripled in the last year as a very rough rule of thumb. Western Ward, NE Reeves, and much of Loving are commonly seeing $7000-11,000/acre bonus rates for tracts of size. NW Reeves and East Culberson rates have also increased dramatically. In the Alpine High areas, rates have also increased, although Apache’s head start and dominant position have resulted in less competition, but the competition is starting to come in from the west, north, and east. Frankly, I admire the discipline Apache has used in putting together their acreage position, but their ability to be the only bidder is eroding. There has been a frenzy of lease flippers come in, and alot of leasing deeper depths in the areas that were initially drilled for the Bone Springs. I would estimate bonus rates at $800-12,000/acre. Few operators ask for less than 25% royalty and the +2 extension options are generally only requested in the areas that are still lightly developed. As always, rates vary depending on location, size, competition and other factors. Competition has been frenetic. Infrastructure build out continues very strong and easement rates continue to climb. Water rates have been steady despite the wet couple of years, and 50 cents a barrel is the floor, with higher rates in many areas. The other major upswing is a flood of mineral buyers paying major money. It seems per net acre prices have nearly doubled in the last year. Also, sales of surface only have been brisk, and on non-mineral classified land, it is an excellent time to sell those isolated surface tracts you have been paying taxes on all these years. I have heard a lot of people shake their head about what is going on and ask how much longer it will continue. The two things to keep in mind are: 1) the cost of lease bonuses and these other payments are pretty small compared to the cost of drilling the wells and building the infrastructure; and 2) they’re not making any more land. It may top out. It may continue to go up. But the mineral and landowners are the ones sitting on the finite resource (land) with a depleting asset (oil and gas). I am not surprised at the result we are seeing.
My family and I recently hired Wade to represent our interests when our minerals came up for leasing. He and his firm were very reasonable and we were very pleased with his expertise in dealing with the various companies to get us the best possible lease price. I would highly recommend him.
(Reeves, Block 68, sec 22, A5759)
Wade – regarding the statement below regarding lease rates in the Alpine High area:
“I would estimate bonus rates at $800-12,000/acre.”
Please affirm for your listeners the $800-12,000/acre range… this is simply amazing!
And thanks for the update. Later – Buzz
Wade, or anyone please chime in with information, what are the going bonus rates for Section 9, Block C-10, PSL, Reeves County, Texas. This is one of the areas Apache has a very strong presence and as Wade mentioned they’ve been very disciplined in regards to offers, they won’t offer more than $1500 per nma, but I’m hoping some other players are getting back in the area, any info is appreciated.
Buzz- Not seeing $12,000 in Alpine High, that is areas along the Pecos River.
Can someone tell me if Sec 26 Blk 13 H&GN RR Co. is in the Alpine High area? We had an offer on minerals about a year ago and nothing since then.