Just joined this forum. Have a lease request in front of me for W/2 of Section 10, Block A-26, PSL Sy. from Evergreen Natural Resources, LLC. Anybody have any experience with these folks? Lease terms offered are $300/ac bonus, 1/5 royalty, 3 year term. Doesn’t sound like very good terms to me. Anybody know who the Operator might be?
Danny, That is about the going rate. You might get as much as 500. Main thing to work for is 1/4 Royalty, calculated at the wellhead, with NO post production costs. Also be careful about Continuing Operations paragraph.
Danny,
I see where 2 wells have been drilled this year to the south of you in Andrews County—1 vertical and 1 horizontal well. No completion reports available on either of those 2 wells. Targeting the San Andres Formation. Several older vertical oil wells in the surrounding area that were drilled back in the 1980s and 1990s (some producing and some plugged). Well #35292 drilled in 1980 and recompleted by XTO in 2012.
GIS Map of Gaines County Block A26/Section 10 and surrounding area: