Oil & gas discussion group for those interested in Ward County, TX. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
I and some relatives own small interests in the "G W OBrien Lease with several older wells presently being operated by Whiting Petroleum. For some time now we have been solicited off and on by companies wanting to buy our interests. Over the past six months, the offered price has about doubled. Anyone know why? Is this area part of the new “Wolfberry” play?
Dear John, There is a new shale play I believe its just next to the wolfberry, and the new horizontal drilling is helping raise production from average 17 barrels a day to over 100. My Grand Father Founded Wink in 1923, and we have many mineral interests in Winkler and several counties near that. This is why you seeing an increase in companies wanting to purchase you mineral interests. Be careful, the small print in their contracts will take all minerals you own.
My suggestion is not to sell, if others see value in buying your minerals, then this should tip you off. Recently a Oil Company approached us about leasing 750 acres we have that has not been in production since 1964. We read recently in the Star Telegram that Companies in West Texas are paying up to $10,000 per acre for leasing. Our offer started at $125.00 per acre.
Our Royalty payments have grown by over 400% in the last 22 years.
Thanks Chris. I value your input and agree with your philosophy. My brother and I have always beklieved that if someone wants our mineral interests we definitely are not interested in selling.
I’m amazed to hear about the $10K/acre price. Is that really for lease bonuses? I did chuckle the other day when I got an offer to lease for interests in Kent County at $50/acre bonus and 3/16 royalty. About 3-1/2 years ago, when oil was “only” $66/bbl, I signed a lease in Kent for $100/acre and 1/5 royalty.
Here’s to another 400% growth period!
What other counties are you in? Maybe we can keep each other up on stuff.
John, I’m sure you can look up that article in the Fort Worth Star-Telegram, perhaps, under blogs, look for Barnett Shale.
We got $15,000 per acre plus .275% for our 12000 sqft yard. here in Fort Worth. Not completed yet, and our neighborhood association got $25,000 kicker too. That was crazy, which each neighborhood doing their own thing. I just found this site while looking for information.
In Kermit, what is the going lease rate? Thanks.
An interesting aside to all this is that secondary recovery using carbon dioxide is in the works for these old oil fields… I believe it is at Penwell there are plans to build a coal burning power plant that will emit carbon dioxide…Is there some connection here???
Is that 1,500.00-2,000.00 per acre per month or what? Thanks.
For those of you receiving offers to purchase your minerals, I own mineral and royalty in Winkler County, and I receive offers all the time to purchase. The same in Pecos County. These offers come from different companies and are nothing more than fishing expeditions. I look at what they are offering just before I tear them up and throw them in the trash. Have been doing that for the past 30 years…My rule of thumb is “Never sell Minerals”. As far as leasing in Kermit, I have not seen any offers, but I know that the adjoining counties of Reeves and Ward are seeing 1,500.00-2,000.00 per acre.
Michelle, the bonus for leasing is payment for a period of years, usually a 3-5 year lease, depending on your agreement with the lessee.
Thanks so much!
any information on the play being put together by Clayton Williams in Reeves County?
Does anyone have info on Section 6, Block -B-29 Ward County, TX I have a Mineral Deed
Cathy Cinotta, About 5 years ago, I leased in Winkler for $750.00 for a 5 year lease. I have heard that Reeves Co leases are going as high as 2,000.00. 25% royalty is good, but the devil is in the details and it is really important to hire an oil and gas attorney to advise you.
Anyone have any idea what pipeline easements in Ward County are going for?
As activity has picked up in these two counties, we’ve created a Winkler County Group. If you have an interest in Winkler County you can join the group here:
Good luck to everyone.
My first suggestion is to get your self a very good oil/gas attorney before you do anything with any oil company.
I would not take less than a 25% royalty on the lease. You must be paid for both Oil/Gas at the wellhead.
DO NOT every sell your surface and mineral rights to anyone.
Oil companies are only looking out for them selves and want it as cheap as possible. Current lease bonus money run from $400 up to $2000 per acre depending on the year you lease; in Ward County I here they are in the $2,000 range per acre at this time. Leases are from 3 to 5 years in length with extensions if oil/gas is discovered.
The field that seems to be explored is the PHANTOM/WOLFCAMP in Ward County.
Oil companies must build roads and infrastructure into the well sites and may want to purchase Caliche ($4.00 to 5.00 per cubic yard) for building roads and pads and water for the drilling operation. Usually the oil CO can drill a water well for their use but water has value at about .50 per barrel or higher especially if sold and used off your property on another well project. It takes hundreds of thousands of barrels of water for the fracking process.
Another issue that comes us is Right of Ways, (ROW) for distrubution lines and power lines across/on your acreage. There is value in these
leases, (Pipe Line Leases) to be determened.
Water, surface, ROW uses are handled under different lease terms than
the orginal Oil/Gas lease.
make sure you are free of liability as a result of drilling or surface contamination. GET AN ATTORNEY!!
Go to the Texas Rail Road Commission (TRCC) website and study every thing you can on the area your property is located in. There is a ton of
info on the internet.
Again DON"T SELL surface or mineral rights.
Can some one explain what a "23 stage “PEAK” completion indicates.
on june 30th, received offer from midland based co. on my 84.5 acres in reeves county for lease bounes of $250.acre and 20% royalties on three year lease with option for two. this seems compared to what appears to be around 1500./acre with 25% being obtained in reeves, ward, other counties close to me. but i do no know the exact locations / proximity to my acreage. any info or advice is appreciated. much obliged. mike b.
Water rights should be valued more than they are…50 cents a barrel seems awfully cheap. And this is something they have to have and you do not have to give it to them, right? Any comments?