We have a small mineral interest in section 59, BL 13 A-473 in Reeves County. We have been offered a 3/2 lease for $800 an acre and 1/5 royalty. Is this a fair price for this area? Also, I don’t live in Reeves county and don’t have access to a sec map. Can anyone tell me what part of the county this property is in? I inherited the mineral interest and don’t know the area well. I can’t seem to find an online map with BL and sec numbers.
That is part of the block that Apache is putting together. $800/ac is on par with what other folks have been getting paid in those sections around Balmorhea, but the royalty you've been offered is low. You should ask for a 1/4 royalty. If you are unfamiliar with the terms of oil and gas leases, you may want to reach out to one of the site sponsors that could help you negotiate favorable lease terms: http://marketplace.mineralrightsforum.com/ad-category/minerals-management-consultants/
Below is a map of your section. There are two permitted wells nearby.:
Thanks for the information. What parts of the county are hot right now?
Northern and Eastern
I too have an offer from Apache in this area. I have been advised by others on this list that $800. ac is a bit low for the bonus.
anyone else have some advise about this? I am also concerned that my lease agreement does not have any verbiage regarding increase in bonus if the lease is renewed after 2 years.
Price action is dictated by competition, and that area is far away from the "proven" parts of the county, so there is little to no leasing competition for Apache's brokers. Until (If) Apache drills a great well out there, it won't command the prices seen in other portions of the county.
How do I find out the results from recent wells. My land is in section 39