I have been negotiating a lease for Survey 3, Block 3, Munger Subdivision, D.L. Cunningham Survey, A-367. Have been offered 325 per acre. How does that stack up for this area.
In the area… CGS (EOG)drilled and completed the Santorinin unit- in 3.5 months the well made nearly 100,000 bbls of oil- 3.5 million gross- they will be drilling many wells in dawson & gaines county- big find in the sprayberry
Honestly…I would have guessed higher for a bonus in Dawson, but you are a bit out of the main play. The Santorinin unit mentioned by @ed_elmore is good (though 10,800’ long, so it better be hah), but nearly 12 miles away from you which is quite a jump when it comes to play boundary delineation.
More importantly though, what royalty is this lease? Push for the highest royalty possible, then make sure post production costs are in your favor, then ice the cake with the lease bonus. Have a professional review the lease before signing.
Horizontal wells can have 30-40+ years of well life, which is a long time to kick yourself for poor lease terms :).
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