I have a small net mineral interest in: S/2 SW/4 Section 222, Block 13, A-1647, H&GN RR Co Survey Reeves County, Texas. Any one know the going rate for this area? I was offered $3k per NMA and that seems low to me. 35 minutes ago
Jan, I’ll check the geology on and see if that’s a fair offer. Reeves is a fantastic area, just depends on the area. Wait because you will get more offers. And I can’t stress enough the fact that you protect yourself as a mineral owner with the appropriate clauses.
As an assumption you are being contacted by a broker, a “leasehound” that will flip your lease for a profit. Everyone has to make a living BUT there is ways to make sure you are protected and given the best possible bonus possible. 25% royalty is non something you should push, non negotiable. Glad to help in any manner possible. PM and I’ll look into it
Another thing thing is how small an interest. We are all here to help
Jan,
Primexx has permitted a horizontal well that covers your property. Again let me check the geology and I can give you a better idea.
Let's just say this, you hold the leverage. Primexx will have to eventually get your interest leased. I will say this if you are being approached with a lease that is less than 25% then that individual is looking to hold an Overriding Royalty Interest. Meaning if they are offering 20% royalty then they will keep %5 ORRI and at a $3K bonus then they will flip that lease to Primexx at $6K bonus for a lease. That is money you are entitled.
That person wants to get you to sign a lease or LOI to lease and shop it to Primexx. Remember LEVERAGE. With the right lease terms and the right language that protects depths where you can lease the different formations. I think of it like a sandwich, you can get paid on each layer of that sandwich.
Don't worry and never be pressured. You have us to help you!
Jan, did you ever get more information from Jack after he checked the geology?
Jeb, I signed a lease with Primexx
(Sorry, I have trouble with this site.)They told me they plan to drill by the end of the year. As I said, my acreage is very small only 1.6 acres, but their permitted well seems to be on that precise spot.
Jan, thanks for answering. Do you mind saying how much bonus Primexx paid per acre for the lease? And was it a 1/4 royalty?
$3000 per acre. Possibly could have gotten more, but was just happy to have that small acreage leased with a well permitted.
Thanks. Good luck on the well.
Forgot to mention that it was a 1/4 royalty, three year, no re-up
Thanks again. I wanted to know those details, but I didn't want to bug you any more.
No problem. I appreciate the information I get from this site.