Section 23, T15S, R38E

What is the average Bonus being offered to lease this section?

What companies are leasing?

Thank you

That’s on the Carlsbad Shelf, south of the Tatum Basin. Shale play targets are not developed in here I do not believe, but it has been a few years since I checked it out. My memory says there is a Clearfork (strat equivalent) in this area which has developed. Also potential in the Wolfcamp (conventional). I would never lease for less than $500-1000 per acre and 25% royalty. The price of oil dictates this. If it gets back to $25, you can cut those numbers by 1/3. If your in a multilevel horizontal play, things change quickly. Every level is a multiplier for the bonus.

does not like the money numbers: I said five hundred to one thousand.