I have acreage in section 32 block 30 T1N. Curious what the current leasing rate is. Any guidance would be appreciated. Thanks.
Lease bonus rates are all about competition. From my experience and what I’ve heard from other mineral owners in Howard County, rates now are about 1/5th of what they were 4 years ago.
Is there any activity in or around my property? I’m trying to use the railroad map but can’t seem to figure out how to use it?
I was going to say no, but looked up and there is a rig a couple of miles away. On the SE edge of the basin but things tend to work better at > $100 oil so who knows where economic limit is.
Below is current RRC map with Sec. 32 outlined. The Paladin wells in the section joining you on the east are interesting.
Like shown on the map NMoilboy posted, Paladin drilled the first one there in '18 with a long lateral extending across two sections but never produced it. Not plugged but appears not economic. This month though they got a permit approved to drill a second long lateral well in that same 1200+ acre unit, but this time running the opposite direction.
That line angling to the southwest that looks like another long lateral must be an error since Paladin’s plat shows nothing there.
No leases recorded by Paladin in last 18 months and only a couple by Bayswater, but Laredo Petroleum has done considerable in Blk 31 & 32 that’s to the west.
You’re about 3 sections south and 3 sections east of some significant production. 8 well sites by Bayswater and (I’m at a loss of whose got all that northern acreage. Public company created from a SOC. Very aggressive. Very successful. Bayswater is excellent too. Ovintiv is also poking around the area.
Given a choice, you want to lease with an operator that has cash/equity access and wants to drill. Luckily in that area that is all that is there.
I’d say we’re 12 months from knowing if the spray berry/A,B,C,D extends that Far East. Right now 820 is the east west diving line. But 36 months ago most would have said nothing much exists to the east of moss lake rd. Being north of old CC highway also appears to be important for now.
As is I’d say $1,000 an acre. You could hold out for $1,250 to $1,500, maybe…$2,500 if you get 10000 bbl month wells around you. But I’d take $750 from Bayswater before I took $1,500 from Ovintiv or Surge all day every day cause Bayswater is in it to drill acreage to flip their minerals in an exit.
We are in a similar boat on a few tracts in that yet to be proved eastern flank. I’m hopeful when I see strong wells terminating just above intersection old cc hey and 820.
Time will tell.
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