What is the current lease terms in Eddy County for mineral rights in T-18S, R-26E and T-18-S, R-27E?
Bonus? Royalty? Term?
I would mostly be guessing, but there is a huge difference in the guess depending on where it is in those 2 townships.
T18S R26E E/2 SW/4; SE 4 of Section 24, T18S R27E W/2 SW/4 of Section 19
Hello Carl, not sure this helps for your location & todays market, in 2020 we signed a 3 yr. lease for 18-18S-27E SE4 SW4 at $500 net acre, 1/4 royalty. They extended the lease the last 2 years through end of 2025.
So far it kept a steady income, looking forward to seeing it drilled.
I just talked to the Landman, and he says that they are not looking for an additional term, because they plan on drilling within 3 months. Sounds as though they are moving quickly. The terms he mentioned are similar to what you got in 2020, but it sounds as though it is negotiable.
Looking at SEP (spur) leases in offset sections from 2022, some were 20% roy and some were 25% roy. Looked like standard 3 year term. You would think the market is better today than 2020 (think Covid oil prices) so your bonus would probably be a bit higher.
I’d think if you can get a few thousand bonus + 25% roy you are doing great.
Well… it looks like Burnett just permitted 3 wells in S2 of Sec 24. Probably could milk them for a slightly bigger bonus.
Sample permit: https://wwwapps.emnrd.nm.gov/OCD/OCDPermitting/Data/WellDetails.aspx?api=30-015-54686
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