Anyone know what kind of Lease Bonus I might expect for Lea County, NM, Sec. 24-T20S-R35E? Or what kind of potential this area might have?
Do you know how many NMA you own?
7.5 NMA…It’s actually still under lease, but it looks like the lease may expire in a few months.
We own mineral rights in adjoining sections . . . . . Unfortunately for us, I believe that our rights are still under a lease agreement because of one well of two - one well in each lease is still being held by the original lease agreement . . . . . “expletive deleted”! I believe both of these wells were vertically completed and produced from the Bone Spring formation but am not sure. They were good wells for our parents and back in the day, the early to mid 60’s they thought they were part of the Central Basin Platform. However, time and exploration has revealed that these two leases are actually in the Delaware Basin! This is a very prolific basin with the possibility of a “Stacked Play” running from the Lower Wolfcamp to the Avalon formations and possibly one or two shallower formations. I am doing what I can to research these lease agreements to determine if they are still in effect.
As far as a “Lease Bonus” . . . . . . I recommend . . . . . that a significant altitude for the initial bonus be your position due to the potential of horizontal development and a royalty of 25% should be a “Lock”!
My best regards,
Stephen Watkins
Thanks Stephen! Yeah, I was told when we signed the lease nearly 3 years ago that Chevron definitely wanted to drill the section. I’ve heard that story before though.
We got $5,000/nma bonus just a bit NW of you.
Randy, what vol/pg was the previous lease recorded in?
fwiw, here was what I had for State Lease sale results over the past year. Note these are 3/16ths leases so I’d expect a bit less than this for a 25% lease.
Its pushing out on the far Eastern edge of the Delaware. The further East you go, the sketchier it gets. Note the change in price per acre going from Sec 36 to Sec 32. EOG drilled a mediocre 2nd BSpring well in Sec 13 just South of you, that’s the nearest data point (3002542731). RidgeRunner has a bunch of wells permitted all along the Eastern edge of 20S 35E, hopefully they actually drill some of those and have better results.
Make that in Sec 13, just NORTH of you.
Thank you for the information!
Lease in 2013 is 1869/636…Amendment 2016 is 2019/942