Anyone know what a fair lease bonus pnma is going for in Eddy county, NM? Received an offer for 5 year primary, 3/16ths royalty and 350.00 lease bonus pnma. There are producing wells on the property.
Thanks.
Seems very low, particularly on a 5yr term. We've had a range of $800 up to $2,500 in Eddy in recent years and all have been on 3yr terms. Would be worth requesting more as well as a larger royalty- perhaps 1/4- and let them come back and negotiate.
I say hold out for a better deal..I wouldn't sign a 5 year lease, I'd keep it to 3 years...that way when the lease expires, you can either negotiate for a better bonus or open it up to competition and make them compete for your business
The company decided not to continue leasing so it didn't turn out at all John.
I just got offered $2,900 an acre for land south of Carlsbad BUT that was to buy my mineral rights, not to lease. They have to do way better than that if I sell it. There is a huge oil pool down there.
Depending on how south, if your inside the bone spring play, and the royalty, you could be looking at lease bonuses up to $35K/acre - which honestly I thought was unheard of.
We received an offer for Sec. 34 t21s r33e for 1k an acre from Fortris (sp) energy. Have not countered yet…any suggestions there is one producing well on the interest. Fortris wants to lease deeper depths and acreage not tied up in the well. This is in Lea County. Thanks.