Curious to know: What sort of lease bonus offers have folks received here recently? Just hoping to gauge what is reasonable to expect in the current climate, any anecdotes or even just a range of $$$/acre would be incredibly helpful. Thanks in advance!
1 Like
$3500/ nma for BLK 13 Section 290 South Half from Henry Resources. They have insisted on using their basic lease form and didn’t want to remove the Warranty clause. We are discussing payment royalties from gross proceeds vs net. They don’t seem to be in a great hurry, at least not like some of the leasing in the past!
2 Likes
In 2020 August or September we negotiated during the height of the pandemic, for 10K PNMA 3 years 1/4 royalty on our attorneys lease form. Ridgefield I believe was the name. Oxy drilled 4 wells in which we have an interest last year, in 2021. Good luck!
Further, with the price of oil per barrel in todays market… I expect high lease bonuses in Reeves County particularly. Where are your minerals located?
They are all in Ward County. Do you think the appraisals are based on what is projected for the fall?
BBlair_TX, were you able to work things out with Henry?
Offered $1000 sign on bonus with 25% section 37 block 4 Reeves county. Haven’t signed yet not sure if I should.
I’ve never been offered a Bonus as low as $1000 My last bonus offered on different tract was $10K Once you sign the Lease, you may never get another Bonus If they drill during the 3 year period, they will in effect OWN you. No more Bonus money
Negotiating a new lease in Blk 13 Reeves Co directly offsetting existing horizontal production. Any thoughts on how to respond to potential lessee’s Landman that says bonus will be less because this is a developed area? I always though bonus should be higher the more certain production is.
Thanks
IMO that is partially right. They will not give you any more bonus money if they go drill your acreage. In which case the royalty will make you multiple times your (high-end) bonus money with no costs whatsoever for you. Which is not the worst way to be “OWNED”. Or they won’t drill. And you can lease again.
If you think your acreage sucks, then absolutely, fight tooth and nail for the biggest bonus there is as that is all you are going to get. If your acreage doesn’t suck, get the most bonus you can but realize that the royalty check is what is gonna put your grandkids through college.
Clearly don’t accept 10% of what other people are accepting.
1 Like
Good thoughts, so what do you think is the reasonable range of per acre bonus for central Reeves County? (Ive seen posts here that range from 1K to 15K)
I tried to answer this in your other thread but some posts seem to take a long time to get approved, so it’s still out in the ether somewhere, maybe it will show up.
In short, depends specifically on where you are.
1 Like
Thank you I will watch for it. This acreage is about 10 miles south of Pecos on Hwy 17.
You’re right about the royalties paying out royally compared to the Bonus. People just need to negotiate for the best Bonus. Most initial Bonus offers are a lot less than what you can get. And then people say their Lease expired, yet the oil company drilled on their tract. There’s no more Bonus. And, they can’t Lease again to another company. And some people are being offered $1K for a Bonus??
I have been offered the 1k
I think we would all agree that $1k is too low for Block 4 Sec 37. If I am looking at this correctly, Callon has spud 4 wells in that section in 2022 without you leased, rig still on location. My first thought is that you have them over a barrel since they drilled before getting all their leasing straightened out.
I mean I can’t figure out how they produced the first Fox 37 well (API 4238935383) since 2017 with you unleased.
1 Like
Hi, Tommy_Joe, finally. Not all to my liking, but we did get them to add a sentence that says they will let me know if they assign the lease to another company. They said all the other lease holders had signed. It was all an odd business; different from other leases I have signed!
I am finally nearly done with the lease on BLK13 Section 290 South Half with Henry Resources. We got them to add a sentence to say they will notify me if they assign the lease to another company. All the other mineral rights holders had signed so there was little leverage other than just not signing. I proposed higher bonus amounts but they will only pay $3500. It seems it is expensive to drill in Reeves Co because of having to truck in the water and sand and supposedly there is a sand shortage!
1 Like
Don’t forget to get your surface use agreement, in addition to the oil and gas lease.
Thank you NMoilboy that is some very interesting information! And to answer your question the reason they were able to drill is because they were incorrect in their judgement of who owned the rights in that area and they have been paying someone else since that well started producing. Not sure if I can pursue any back payment or not.