Hello!
My cousins and I recently received Oil, Gas and Mineral Leases for land that was passed down to us.
The terms are:
$1000.00 per nma bonus consideration, 3 year paid-up primary term with option to extend
another 2 years and 1/5 royalty.
I've looked at the map and there does not seem to be any activity nearby. There is one 'dryhole' that was started and completed in November of 2001.
Do we need a lawyer? Should we try and negotiate (although I don't see anything to indicates there is a lot of interest).
The lease says Producers 88 /With 640 Acres Horizontal Pooling Provision.
Which I think is pretty standard, but I'm not sure.
I've have been up late for two weeks googling everything I could think of.
Any thoughts, comments or insights would be greatly appreciated.
Sincerely,
Mary
* Whoops. The land is located in the Southeast part of Block C-18, Section 9, and the Part of the east area of Section 6. -m
Mary,
I would be happy to assist you with negotiating your lease terms. Based on what you've described, it sounds like there is a lot left on the table. In addition to bonus/royalty, there are a number of clauses that are beneficial to include in the lease. Also, there does appear to be a reasonable amount of activity in your area. A good rule of thumb for Reeves County is that if there are active wells and/or permitted wells to the south and west of you, then you are in an area that will be desirable to somebody.
It is also possible that there is more than one group that would be interested in leasing your property, and if so shopping the acreage is the greatest way to increase your bonus offer. I would be happy to send your acreage to my contacts at various operators and non-op groups.
My email address is [email protected]. Feel free to drop me a note and we can discuss your property in greater detail. I help out mineral owners as a hobby and there is no requirement that they pay me.
Hi Mary,
listen to the others. definitely 25% royalty. I am being offered $3,500 for our acres also in BLK C-18, Section 5. we're working with Wade Caldwell.
Wonder if anyone has any info a bit further south: block 55? i am also being offered $1,000/nma to extend a lease that isn't even up for another 8 months or so. i don't think my area looks as active as block c18, but should it be $2,500/nma less? thanks for any help.
Patrick
Patrick I would be happy to look at what you have and see if we could offer you more.
Shaw Interests/MDC Energy just backed out of their Offer to us this week. My sister & I have acres in BLK C-18, Section 5. Our cousins who also have acreage in this same section got their checks, then MDC rescinded their offer to us for budgetary reasons at the end of this year. If another company is interested in our acres, let us know. Thanks, Lea Scalf