What is the going rate for leasing Reeves County Texas?

3 items of interest near your SEC 6 BLK C8 PSL:

  1. GLO 10/8 Sealed Bid Sale item (see comments above) Re: SEC 43 BLK 72 PSL is less than 1 mile NE of your SEC 6;
  2. SEC 7, just to your east, Upcurve Energy received a permit 5-10-19 for the HARTLEY 7 #1H that has not been drilled; and
  3. Adjoining SEC 8 just to the east of SEC 7, Tall City Operations III completed drilling the BLUTO 15H #1H the week-ending 8/23. The GLO sales results from the 10/8 sale will give you a clearer idea of what SEC 6 may be worth. Later – Buzz

Offers in PSL I’ve received in the last 12 months are $5K-$8K per nma for leasing. Never sign a 2 year Extension. 25% royalty minimum I’m holding out for more bonus money. I didn’t lease with those companies

When we went back to the landman asking why the offer was so low ($1,000/ nma) she said it was because it was a “protection” lease and they weren’t completely sure we owned it. They contacted us originally because we are the only relatives of an aunt, who may or may not have owned it. Does this seem reasonable?

FYI – no bids received Re: “GLO Sealed Bid O&G Lease Sale - October 8, 2019 #MGL 50 - E/2 SEC 43 BLK 72 PSL, 320 acres, A-4615 Minimum Bid $4,000/ac 3-Year Term, 25% RI” Later – Buzz

Continuing the discussion from What is the going rate for leasing Reeves County Texas?:

Hi Buzz - I saw as well that there there no bids on that auction. What does this mean for Reeves County? I am unsure if I interpreted it the right way.

M_B – in these days and times – as a result of depressed oil and natgas prices the rig count in Reeves County has dropped from the hi-80s in Dec 2018 to under 50 last week – $4,000/ac was too high a minimum for that area. For sure, fringe area leasing has slowed as E&P companies near the end of their budget year. All IMO, of course. Later – Buzz

In the past 2 year’s Appache—who I follow closely— would take out 3-4 maybe 5 drilling permits a week

Now they sometimes go two weeks with only 1 permit

At the same time Apache is still signing leases in southern Reeves County

No one should give up

We own mineral interests in Section 25, Block C-17, PSL. We leased 2 years ago for $4,500/acre. We have a total of a little under 20 acres. There seems to be some interest now from different parties to purchase. Need to figure out what a fair offer is and if it would be in our best interest to hold or to sell. Any help would be greatly appreciated.

Reeves county is amazing! It’s THE place to own minerals. If I were you, I’d keep it.