Section 23, T15S, R38E


#1

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

What companies are leasing?

Thank you


#2

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 $■■■■ 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.


#3

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