It is acreage the State has. The bonuses are definitely of high interest as they are indicators of values and where interest is centered.
3 miles north of pecos, 389-33564.
George, that price seems a little low, given all the activity and Wolcamp upside. There is a lot of oil in the shale and they are just now starting to really figure it out.
Stephen, Yes. That would be for a purchase, not a lease. Some leases are being written in Reeves County for the amount they offered to purchase your land. Of course, there are large variations by location, but the numbers keep getting better.
I wonder who Wiam B. Robbins is? Or who is he representing?
can anyone the economics of selling your mineral rights? My family has 330 acres under lease and has a horizontal well on it but capped at the moment, waiting on pipeline. Over the past yr we have received more than a dozen offers to sell. Only one of them made a specific offer of 3500 an acre, thats over a million dollars. We have no intention of selling but we are curious, does a million dollars for 330acres of mineral rights make sense? How do they come up with a number like 3500? Do they know something we dont? How do you know what to offer if nothing has come out of the ground yet?
George,
I’ve seen some numbers over 5 times that for an outright purchase. I receive a letter every month from bottom fishers offering to buy my minerals. Interest in the Delaware Basin (as well as the Midland Basin) continues to grow.
Hi just trying to figure out whats going on in Reeves County over the last couple of weeks. Have a section in Block 55 T5 that I have been trying to lease for years now… Had a lease singed for $900 NMA with Arabella back in May that they backed out of. Was told that it was too far out of their leasing area. Phone has been ringing off the wall with offers since Friday afternoon. What are they after and what is the lease bonus ceiling? Initial offer from the last company was $1600 NMA.
Kelly, there is a major Wolfcamp play blossoming north west of Pecos and into NE Culberson County. I’ve heard of some $2,000/acre offers, FYI. Tread gently and get a good deal. May we have you exact legal description, please?
what is a GLO sealed bid sale? Is it good or bad for Reeves?
Where is your acreage please, George? There are a lot of outfits trying to “steal” minerals, IMO.
Kelly, who are the operators approaching you, please? Cimarex? Energen? Apache? Shell?
My sister and I have received an offer by ConocoPhillips to lease our undivided 1/50 of 640 acres in Section 46, Block 45, PSL, Reeves County (AB 2496) and undivided 1/50 of 287 acres in Section 4, Block 53, PSL, Reeves County (AB 725). Bonus $1250/acre, 1/5 royalty, primary term 5 years.
Except for the lengthy primary term, this looks like a pretty good offer - ConocoPhillips had previous tries to lease at $800/acre and 25% royalty or $1,000/acre and 1/5 royalty (two years primary, option on a further three years), but then pulled back when I started trying to “negotiate”. In the meantime, I’ve gotten used to the idea that our holdings are just too small to really negotiate much, but the long primary term bothers me. I don’t want to foul up another offer by haggling, but would appreciate any comments from people knowledgeable in the area as to how reasonable this offer appears at present.
Thank you, Kelly and yes, it is the Wolfcamp that is looking so good!
Mary Bird, Cimarex is drilling/permitting just 2-3 miles NW of your Sect.31. Have you contacted them?
William Robbins is representing Elevation Resources. We recently signed a lease with this outfit.
GLO - Sealed Bid Sales:
http://www.glo.texas.gov/what-we-do/energy-and-minerals/oil_gas/sea…
The GLO contracts are usually for 5 years so those bonus amounts do not seem very aggressive, but they are smaller parcels also.
Over $17,500/acre? Wow!
Of course in a couple of years if the EOG and Cimarex engineers are correct, EUR’s may be through the roof compared with what has been stated in recent months.
William B. Robbins could be Blake Robbins w/ Arabella. Later – Buzz