Hello! We are getting quite a few offers to buy and lease our minerals in Howard County. Can anyone advise on the going rate to LEASE. We are in Section 57 Block 20. We are adjacent to the Whitetail well.
Thank you in advance for the advice!
It doesn’t look like any leases have been recorded in Block 20 recently. The closest current activity is in Block 25 that joins Blk 20 on the south and west. The map attached below is what the Railroad Commission currently shows for your area. Section 57, Blk 20 is outlined in red and the Whitetail well you mentioned is highlighted in blue.
Up until August of last year the Lakewood Whitetail was still producing (starting in 1996) but it now appears to be shut-in. It was the last of the old vertical wells in that area that hadn’t been plugged and abandoned.
Since bonus rates and lease terms, or prices paid on mineral sales aren’t made public when leases, or sales deeds, are recorded, that information is always hard to pin down. The horizontal drilling activity that is closest to you are all the wells the map shows a couple of sections south and west of you that were permitted by High Peak Energy. If High Peak isn’t who has contacted you about leasing, before going any further I’d try to find out if the folks making the offer have a track record and plans to drill, or are just speculating, trying to get in a position so they could flip leases to an operator for a profit if the horizontal drilling activity moved your direction.
I agree with Dusty. It’s generally best to lease with an operator that intends to drill on your mineral interest. I’d wait for them, or a landman working on their behalf to contact you.
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