I have received an offer to lease my 36.11 net acres at this location for 3 years with $6000/A bonus and 1/4 royalty. The offering company is KEW Drilling. I have requested their lease agreement for review. If the lease agreement is a good paper - this seems to be close to the top of the market as I understand it. Are there any other examples in the area?
I have also received an offer from KEW Drilling in S10, T26S, R36E for the same $6,000 bonus. The lease has been reviewed by my attorney & revisions sent to them. It looks promising but not done deal yet. This is on 30 acres split 3 ways with my brother and sister.
I have also received an offer from KEW Drilling in S10, T26S, R36E for the same $6,000 bonus. The lease has been reviewed by my attorney & revisions sent to them. It looks promising but not done deal yet. This is on 30 acres split 3 ways with my brother and sister.
Depending on the size of your gross acreage, with more being better, I would prefer a shorter term say 18 months at $4,000 per net mineral acre while maintaining a 1/4 cost free royalty. good luck.
I received 3000 per acre with 1/4 interest on 5 ac in S6 T25 R 36E (not full legal) Is 3000 per acre too low for this area? They have a 3 year lease with a 2 yr option. Blackbeard Resources out of Midland made the offer.
sounds like you have already done the deal so if so, don't look back and second guess.
I don't like options, there is no benefit to you and all benefit to them. It sets a ceiling but guarantees nothing. Going forward 5 years of control is too long. If they are going to drill, then drill, don't just tie up the land..
No I have not done the deal. ?
Have they already permitted the site? are they ready to drill? I would not do the option. three years is more than enough time. Needing more indicates to me that they are merely brokering the prospect.
can you share what is considered to be a good lease document for the area. I am not familiar with New Mexico law pertaining to Oil & Gas Mineral interests -- I am a sheep (or is it a goat) dealing with potential wolfs.
If you have received an offer for $6000/acre, I would say that is very good. We leased in 25S 36E this summer for $2000/acre. 25% royalty.
We leased in 25S 36E this summer for $2000/acre. 25% royalty.