I am new to the group and have 15 acres in Lea County - specifically Township 23S Range 35E sections 14,15,22 and 23. Energen is wanting to lease for 3yr and 2 yr option. Wondering what is the going rate around there? Any info would be appeciated.
@Lynn: I have property nearby that was leased 6 years ago and is producing and is now having new additional wells drilled on it. So I'm not sure what the current going rate in for the bonus, but I would focus on maximizing the royalty rate. I would start at 25% and if needed, go down to 22.5%, but not lower.
Thank you for the information. I have gone back and asked for 1/4 royalty.
Anyone heard of Chisos Minerals, LLC? I received an offer from Fortis Minerals, LLC out of Texas but the "purchaser" on the offer is Chisos Minerals, a Delaware limited liability company.
Does anyone know of a well with a lateral that is producing from the Upper Wolfcamp formation? (would be great if it is in pool 98094)
If anyone is interested I found some in Sec 26, T25S R33E by EOG.
These wells have laterals about 4,500 feet long in Wolfcamp Upper formation. Does anyone know if the length of the lateral is (somewhat) proportional to the production rate? IE if hypothetically the lateral was just half as long then would the production rate be about half?
I would like to look up wells on the NM OCD map, and found the township and ranges, but what if I want to see the status of a couple that have been abandoned, I guess. Where is the API number? I tried the division order number, but that didn't work. And what is the spacing number? These are 23S 36E and 24S 36E. Thank you.
@Vivian, on the NM OCD web site if you go the Twnshp-Rng you are interested in then click on the well symbol it will give you some information and links to more info about the well. If you zoom in enough the well symbols change to be what is shown on the legend on the left side. See example above of the area you are interested in.
HTH
Thanks for the help. I found the active well, but still curious about the 'temporarily abandoned' well aka Lankford #1. I did find a Lankford #4. They don't change the numbers without telling me, do they? This is 23S 36E
Anyone know of a good attorney to review documents for the sale of a fractional interest in mineral rights? Please provide name and location.
Thanks!
I need to see what a fair price per acre for mineral rights in Lea County, Sections 10 and 15. I control a 15 acres parcel in each section. I have received two offers at $1,000.00 & $6,500.00 per acre so that is quite a variance.
Sec 10 = SE/4 of SE/4, T26S, R36E
Sec 15 = W/2 of NW/4, the SW/4 and S/2 of SE/4, T26S, R33E
The $1,000 lease bonus is very low and the $6,500 is more reasonable. If this is a purchase offer, then you need to get more data. Do not let anyone rush you. Leasing and drilling is moving into Lea County and things are starting to heat up.
David Ammons, The variance is because these parcels are 18 miles apart on the surface AND the subsurface where the geology can change dramatically in a few hundred feet. I will guess the prices are for leases, right?
All mineral deposits are different. In Lea there are multiple zones vertically as well as horizontally. There is no "one size fits all" in the subsurface.
Gary Hutchinson
Gary Hutchinson
thanks. let me clarify. I want to sell the mineral rights not lease. They offered $6,500 first on only Sec 10 R36E. Then 2 days later they discovered the parcel in Sec 15, R33E and offered the same $6,500/acre.
TennisDaze
I am selling the mineral rights. See the comment I just made to Gary H.
David,
After checking the well completions in the two areas, it appears to me that you are being offered an amount that is a large discount to Fair Market Value. If the purchase terms also favor the buyer, I advise you to seek some professional help before you sign anything.
I assess FMV every day and can give you the name of a knowledgeable lawyers in Artesia and Roswell if you like. Also re-read TennisDaze comment. She knows what she is taking about from experience.
Gary Hutchinson
Just some more info for the area. I have 360 acres in 15S/36E. I leased it three years ago for $500 acre. When the lease ran out in January, 2017, I released it to the same outfit for $400 acre. I just got a call this week from a different firm offering me $525 per acre. So something is going on in this area just NE of Lovington.
David,
I have bought interests in several tracts in your general area recently and paid substantially more than what you have been offered.
Gary Hutchinson from 4 hours ago.
Thanks for the advise & reference to Tennisdaze comment.
to Luke Alexander 2 hours ago
Thanks agaon. I have a day job NOT in this industry and am just beginning my education. I am Executor of an estate with 30 acres not under lease; I am conferring with my probate attorney on the document/title side. Haven't yet decided to lease or sell.