Mr. Vinson - we, too have minerals in Gaines Co. and would like to be in touch with yourfriend.
Jim
Good morning Jim, I sent you a friend request. If you prefer, please send me your contact information through the messenger and I will pass that along to him. His name is Devin and he is usually quick with responses. Thank you sir- Mike
I have just received an offer from Petro Vista resources to purchase all of my mineral rights for $1050 per net mineral acre, Sec 10 Block A-22 PSL Survey. Is this an indication that there is an increased possibility of drilling activity?
Back in February of this year, a landman representing Ring Energy was looking to lease right we own in S/W 1/4 of Section 18, Block A-21, PSL Survey, Gaines County, Texas. They went silent. Has anyone recently received an offer to lease in this area?
sec 63 block ax PSL survey ??? lease seemingly not extended Gaines county thanks 180 net minerals
Would anyone here be interested in Section 154, Block G?
Cindy, look under the Home tab above. Generally no solicitation allowed because the owners depend on advertising to support the site, plus it undercuts the spirit of the site which is to exchange information.
I’ve received an offer to lease my small interest in Section 8, Block A-12, Gaines County. 1/4 royalty, 3 year lease, $500 per mineral acre. Others in my family think $1000 per acre is more in line in the area.
What do you think?
ekl
EKL, I agree with your relatives that $500 is too low, although it may not be as high as $1000/nma. I’ve attached a screenshot from DrillingInfo, and you’re in the leasing trend for A-12. This shows all the activity in the past 6 months. The players are Forge, Sheridan and Fortuna. I’m surprised they didn’t request a 2 year option. They may ask for that in exchange for a higher bonus.
Hello Caroyl. WELCOME TO MINERAL RIGHTS FORUM. After viewing the GIS map I find no activity or production in this area. In the past there have been some active oil wells and gas wells. The nearest production at this time is 3-4 miles to the East and Southeast of Section 92. I would say that the $450 per acre bonus money and 20% royalty is a fair price per acre in this area of Gaines County
GIS Map of Gaines County Section 92/Block H/A-568 and surrounding area:
CLICK ON MAP TO ENLARGE
Clint Liles
Caroyl, I do see where the permitted location is on the GIS map but on the approved permit I don’t see where the well was ever spud(begin drilling). That date would show up in the STATUS area towards the top of the approved permit.
Link to the Axem well #3(API 165-38607):
http://webapps.rrc.texas.gov/DP/drillDownQueryAction.do;jsessionid=…
I personally don’t see where that would make any difference in bonus or royalty percentage.
JUST MY OPINION
Clint Liles
For Carolyn.
I have leased in the past year 5 different sections in Gaines County. For the most part these tracts are in unproven areas. I’ve insisted and received 25% and my own lease form. $450 may be reasonable, but 20% royalty is not. For most parts of Texas 25% has been the standard for quite some time.
Hi there, I’m new to the forum. I recently discovered (after a leasing company contacted me) that I own mineral rights in Gaines County. It’s not much, 2.333 acres in Section 92, Block H, just west of Cedar Lake. I was offered $450 per acre, 20% royalty and a 2 yr option to renew. I have no idea if this is a fair price for the current area and market and I’m hoping some of you in this group might have some info on that. I would really appreciate it. Thank you!
Donald, thanks for your input as well. I had an inkling that the 20% royalty was low just from scrolling through numerous posts on this forum. Would you mind explaining what you mean by “insisted and recieved my own lease form”? Also, just curious, did your family come from this area (as mine did)?
I paid an excellent oil and gas attorney to make it for me – which is the best recommendation.
If you don’t mind doing a little research, you can find a go-by from county records. Look for one from a seemingly oil and gas savvy grantor. Many Texas County records are available online. Texasfile.com is a good one.
Hey Clint,
Thanks for your response! One other tidbit I might mention…my interests lie in the southern half of that section and last June a permit to drill was approved in that area. The operator is Pitts Energy Co and the lease name is Axem. It was approved to drill 13,900 ft and the formation associated with it is called Mississippean. Would this make any difference?
Thanks again, Clint. Getting opinions is exactly why I’m here and I appreciate your responses! I’m wondering exactly how the permits to drill come into being? Some sort of survey is done I presume that shows potential? Do alot of permits never pan out into anything? Do all permits get drilled eventually? Just curious about how it all works.
Hi Caroyl,
By “insisted and received”, I tell the landman, “I’m interested in your lease offer, but I need $550/acre, a 25% lease, and I have my own lease form.”
Typically, the most resistance is on the bonus side, so we settle somewhere between their first offer and my counter offer. The 25% royalty is so normal it is accepted, and the lease form is subject to the lessee’s edits – still much better than the standard lease form.
Donald, that’s great info! How do you come up with your own lease form? Does one need a lawyer for that? Do you have an example of one? Thanks again.