Clint I am so sorry to hear that and I hope your wife recovers very quickly. To update you and anyone else interested. I figured out how to use The TX RR Public GIS location map. Anyone interested it is a great tool and I found it in the archives here in the Mineral Wise!
It pin pointed all the activity etc in the area and very helpful. I then took that info and Texasfiles.com and came up with some info referencing the little past history. So now I need to know if this ever got transferred to my Mother or is just languishing…
But with prices getting sky-high in the country’s most profitable play (averaging $33,000 per acre), some dealmakers are beginning to look at basins outside the popular areas in the Permian where properties – and companies — can be had for a fraction of the price.
Some are whispering that Ring Energy Inc. (NYSE:REI) could be a takeover possibility with its promising properties in the Central Basin Platform, a less popular prospect in the Permian that dates back to the 1920s where companies have been quietly picking up acreage recently. One of them is Goldman Sachs & Co.-backed Opal Resources II LLC, which was the high bidder this past May for a 341.56-acre parcel in the area with an offer of $752 per acre, according to the New Mexico State Land Office.
Other companies operating in the Central Basin Platform include Apache Corp. (NYSE:APA), Energen Corp. (NYSE:EGN) and Comstock Resources Inc. (NYSE:CRK) as well as Samsung- and Korea National Oil Corp.-owned Parallel Petroleum LLC, Kayne Anderson-backed Triumph Energy Partners LLC, EnCap Investments LP-backed Forge Energy LLC, Boyd & McWilliams Operating LLC and the billionaire Hunt family’s Petro-Hunt LLC.
Great find! Interesting info on the Channel Energy lease sale.
J Cleo Thompson and Browning Oil have a joint venture in this part of Gaines and have picked up significant acreage around their permitted horizontals shown in the lease sale prospectus.
Owner Owner City Property County Appraisal Year Interest Type Value BLUMENAU DANNA LEA Plano, TX DAWS NAN “1677” Young County, TX 2016 0.001605 RI $140 View Details BLUMENAU DANNA LEA Plano, TX THUNDER A-965 2H Young County, TX 2016 0.000837 RI $1,740 View Details BLUMENAUER MARTHA BOONE Ormond Beach, FL GEORGE J T Harrison County, TX 2015 0.000072 RI $0 View Details
Seems like things are looking up in the oil patch. Just had a lease inquiry for interest in a parcel in the NE corner of the county above Cedar Lake. Anybody know what the “going rate” is now??
Congratulations on the offer, I do think thing are looking up. Even just within Gaines County location is still everything. If you’re in a quiet area with little activity I would see $500 bonus per nma as reasonable. It is always a good idea to check the railroad commission permits, GIS maps and production data to see what is going on around your particular interest.
In some parts of Gaines with more activity the bonus could be several times higher than the $500 “baseline” suggested. Also, these figures always assume a 1/4 royalty and a reasonable lease form.
Yes, it seems like $500 and 1/4 is the very least you should accept after that conversation. He might have offered that range so as to build up your confidence that you would be at the top of the range with those figures and, in doing so, discourage you from pressing higher. Depending on what is going on nearby, you might have a case to press for more. If the area is unremarkable, I think you’ve got a reasonable offer there.
The parcels (adjoining) are SW/4 Sec.1, Blk G, C&M RR CO., abstract A-1183 and the NW4 Sec.1, Blk H, D&W RR CO., abstract A-1186. The immediate area appears “dead” on Google Earth and the RRC site. Bu there are established fields to the North, East and South at least one of which looks fairly old. Just guessing but the prospective lessors may be taking a wild gamble because of these, or they may think the new technologies would produce there. Thanks again for the input. we’ve only got about 60 net acres between the 2 parcels so not much leverage, but it’s fun trying!
Thanks J-F. The conversation had an interesting comment from the land man which I purposely ignored. He said his clients were offering “in the range of $350 at 3/16 to $500 @ 1/4 tops” Not sure why 1) he would volunteer the top and 2) why if he gave that top anyone would consider the “bottom”.
We leased our land last year and got 350.00 an acre for a 3 year lease with the option for another 2 years for another 350.00 per acre. We got 1/5 royality. Also, if they drill they have to drill 2 wells a year until all the site is developed, or it will be open for lease again. Which I thought was pretty good. Our land is the South, almost 1/2 section of Block G, Section 168. I noticed a recent drilling permit a couple of miles south of us. If anyone sees permits for drilling on are immediately around Block G, Section 168, which is about 6 miles north of Seminole, would you please let me know? I would appreciate it.
One other remark about our lease. When the company first contacted us they wanted to lease the minerals for 300.00 a acre for 1/5 royalty for “FIVE YEARS” I told him that time that we would not consider that lease at all. I offered to lease the minerals for $300.00 per acre for a 1/4 royalty for a 3 plus 2 year lease OR $350.00 per acre for a 1/5 royalty for a 3 plus 2 year lease. They took the lease at $350.00 so I am hoping they plan on drilling soon.
