Section 85, Block 8, H&GN Ry Co Surv

I have been approached by a lease broker to lease this section for $750/nma, 3 yr primary term, 25% RI, with a 2 yr option to extend at the same bonus rate. Does anyone have any current information about what are lease terms in this area? Who is leasing/operating in this area? There seems to be stepped-up interest in this area again, as I've had several inquiries. I was approached several months ago by a broker who initially offered $3000-$3300/nma, but he has never followed up (too bad!). Any info would be greatly appreciated. Thanks.

Hello Anne,

I don't see any activity around your area of Pecos County. A vertical wildcat well(371-30912)gas well/was drilled west of your minerals in Section 67 and completed in 2004/plugged in April 2008. I see some older vertical wells around the area 3 to 4 miles away but no new activity and no production close by. If they were my minerals i suspect I would take the offer as is. JUST MY OPINION

GIS Map of Pecos County Section 85/Block 8/A-236/H & GN Ry and surrounding area:


Clint Liles

Thank you, Clint. Very helpful information. Really appreciate it.

CDR Operating has taken leases in the sections all around your minerals in the last 8 months. Some company is locking up that area. You may be one of the last to lease and can do much better on the bonus. Do not rush your negotiations. Best not to agreed to and extension or else get a big price increase. The lease terms are really important, such as no costs and release of depths, etc. How many acres doe you own? If might be worthwhile to have an attorney look at the lease with you.