Last week and this week, we have been receiving phone calls and 4 mailed in offers for Oil, Gas and mineral leases on our land, located section 247 block 13 h&gn rr survey reeves county. We are considering to accept and sign one of the offers with : "a total lease bonus of $9000 per net mineral acre for a 3-year primary term while providing for a (25%) royalty".
We would love to hear more experts advice and helpful info in this area! Any news of discovering oil in this section/block!? Your input and info is highly appreciated ;)
gracey,
I'm no 'expert' but if you have a lease to sign with those kind of numbers you need to go ahead and sign.
You need to have a clause in the lease stating there will be no post production costs or deductions taken from your royalty checks.....the lessor will not be paying a percentage of the cost of processing, gathering, treating, compressing, dehydrating, transporting and marketing or otherwise making such gas or other substances ready for sale.
After checking the area on the GIS(Geographic Information System)map I see where Clayton Williams, Centennial Resources, and Primexx Operating are the major oil producing companies in the area. There are some good oil/gas wells in the area.
This link is to Production Data on well 34080 in Section 274:
http://webapps2.rrc.state.tx.us/EWA/specificLeaseQueryAction.do?tab...
GIS Map of Reeves County Section 247/Block 13/A-515 and surrounding area:
CLICK ON MAP TO ENLARGE
Clint Liles
gracey,
Link to Completion Report on well 34080 in Section 274 next door to the East:
http://webapps.rrc.texas.gov/CMPL/viewPdfReportFormAction.do?method=cmplW2FormPdf&packetSummaryId=114745
409 barrel oil per day/416,000cubic feet gas per day
Clint Liles
Thank you so very much Clint! We owe you big one!! ;)
gracey,
There is no question that lots of oil will be produced from our Section. Negotiate a lease accordingly. Based on my knowledge of the known oil in place per acre, the bonus offer is very low. Of more importance is the measurement and payment of the 25% royalty. Especially if you have any thoughts of selling after production is established A poor lease will cut the sale price in half.
I'm currently involved in multiple transactions for inherited mineral owners in Reeves. I know you can do much better. You may only get one more chance at a good lease. Take it. You are in a strong owner's market.
Gary L Hutchinson
Thank you very much Gary! Greatly appreciated!!
You mentioned there would be or have already been produced lots of oil from our section?! Really?! And $9000/acre bonus offer is very low?! What would be the fair price then !? ;) How to obtain a better price ?!
Any further help will be greatly appreciated!!!
Best wishesss
gracey
