We currently have a lease with Cimarex with 4 operating wells on 55nma. All good producers. Cimarex wants to obtain a lease extension including the option to drill deeper. They are offering 1/4 royalty (normal). $1,000 per nma bonus and $1,000/acre paid up 3 yr extension with a 2 year option.
These two numbers sound low. Does anyone have any recent experience on the numbers?
You can get more and Cimarex will pay whatever you ask.
Thanks Michael - Do you have any support or underlying numbers?
John, yes, that’s way too low. Last December I got $2,500/nma (although small acreage), three-year primary, no extension. I won’t do extensions any more out in that area, and 25%. I agree with Michael.
John, I agree with the other comments listed. We signed a couple of leases fairly recently with two different companies in the area for $2500./nma and 25%. 3 year primary lease no extensions on small acreage as well. This continues to be a “hot” area for the oil companies…stacked laterals, etc. Don’t settle for less!
Could you explain stacked laterals? New to all this…
Elizabeth, by stacked laterals Mike is referring to horizontal drilling targeting different depths.
John, I sent you a private message. We work with an operator that would like to review your acreage. Can you please email me your contact info? [email protected]
David does that operator charge to review your acreage.we have 6 tracts that we know of some production but can’t find out much information till all the estate stuff gets cleared. Thank you
Ralph, if you email me a list of the property descriptions I can forward it to our operator contact. There is no fee to review the acreage.
Ralph Huffaker said:
David does that operator charge to review your acreage.we have 6 tracts that we know of some production but can't find out much information till all the estate stuff gets cleared. Thank you
Does anyone have any new updates for offers in the area around Block 34, Section 171. We are now getting more interest in additional deep drilling rights below our existing 3 producing wells with Anadarko in this section. Looks like stacked lateral plays are heating up. Thanks in advance for any updated info. (Current offers range from $1500. to $2500/acre-Bonus. .25 royalty/ 3 year lease/12 nma). Mike