Hello All
My family has recently been contacted by Point Energy with an offer to lease Blk 34 Section 75. Curious if anyone else in the area has been contacted? Compared to what we were being offered in 2017/2018, their offer is very low per NMA.
Just wondering.
Thanks!
Tony, We have 60 acres of minerals in sec 34, Blk. 34 and were recently contacted by an independent landman working for Pioneer (Exxon). Not sure how close we are to you but apparently they are putting together acreage for a play in the Barnett Shale. I haven’t received an offer yet, they are checking title to see if we may be HBP by an old lease held by shallow wells (our interest is below 3,400’). Just curious what we’re they offering?
Section 75 is pushing the basinal limits of the Wolfcamp. Hence the low offer. Decent amount of risk bearing on the lessee in this instance. Woodford/Miss is still very TBD and highly risky as well due to depth and pressure.
Thank you matt2e,
We’ve been told that before, that is about being on the fringe of the play. Rather disappointing to hear as a mineral owner. My question….
Have the means that Geologist use to determine what’s under the ground improved significantly today? Reason I ask, back in 2017 we leased for 3 times the amount per NMA than what is being offered today. 
. Of course I realize there are no doubt many factors that play into any offer. The price of oil #1. Guess we will see how it all plays out.
I think we are much more confident with the fringe boundary now. We drilled the Tilden and Eclipse pads at Forge which were about 3 miles northeast of you. Tilden were fine but at Eclipse we had a steady curve we drilled up as we came out of basin. H2S is the biggest problem on the fringe and it is pronounced on the eastern boundary. Notwithstanding, there is probably deep potential there as Exxon has kept most of its deep rights in that part of Blk 34.
Thanks for your input. This can be valuable for forum members.
Sorry for delay getting back to you.
Their offer is $750 per NMA 5 year term plus 2 yr option to extend with 25% royalty.
Thanks Tony. Good information. I looked at the RRC GIS and turns out we are about 5 miles east of you and probably similarly situated in the basin with regard to the Wolfcamp. Hopefully the Woodford and Barnett shales hold promise.
Tony, several companies have taken a position to expand OGL acreage during the low product price period by offering extended lease term, lower bonus amounts, and lower royalties. The 5+2 and $750 will fall into this methodology. With prices increasing, you may want to consider waiting or making an aggressive counter proposal.
Personally, three year term and no option are a better time frame.