Recently was offered a lease in Eddy Co., New Mexico (Carlsbad). Bonus + 20% royalties. 5 acre gross, 2.5 acre net.
Section 25, Township 22 South, Range 26 East, in the N/2 SW/4 NE/4 NW/4.
Opinions, insight, advice is appreciated
Everyone leasing in SE of 22s26e appears to have signed with either Alpha Energy Partners, Sarvis Creek Energy Partners, or Red River Energy Partners. They are likely leasing on behalf of Mewbourne or Matador or Permian Resources or selling to those guys eventually.
IMO in NM its always a good idea to be leased. You might, at a minimum, contact those guys or maybe they have all already contacted you. Say you own 2.5 net mineral acres in your legals, have seen they are leasing in this area, and wanted to know if they would make you a lease offer. Then pick the best option. Mewbourne wells just SE of you are pretty decent.
IMO sign a 3 year lease. Try to get 25% royalty. Bonus is probably not going to be a lot, $1-2kish. See what happens.
Contact info I saw on the interwebs:
Sarvis Creek
[email protected] P.O. Box 8663 Denver, CO 80201
RedRiver Energy Partners
432-247-1026 [email protected]
Alpha Energy Partners
Phone: 432-247-5935 Email: [email protected]
We just leased our minerals in 22S-26E for $5k/nma @ 25%, no kicker, no post production expenses. Although, we’ve heard that Permian Resources have been making lease offers around the $6,500/nma @ 25%… Crazy how much lease prices have increased in that area over the last ~6-months
Perhaps a stupid question, but could you offer more details? Producer? Unique circumstances? In early stages of negotiation and trying to see if our circumstances 20 miles away would be any different. Also, what do you mean by “no kicker”? Thx!
@gymbo1 we leased our fee minerals on a 3-year lease term, “no kicker” meaning they don’t have to option to extend the initial lease term if the lands haven’t been drilled at the lease expiration date. That being said, all areas and situations are different and @NMoilboy is 100% correct in NM it’s always a good idea to lease your minerals in NM (if you don’t plan on participating) because if your minerals get forced pooled in NM they become pretty much worthless for a long time
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A “kicker” is slang for an option to renew the lease granted to the lessee for an additional period of time. It is usually accompanied with a new bonus.
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A whole lot of 22s26e seems suspect as heck, but it’s shallow at least 
$6.5k/nma @ 25% seems a bit nutty, but its a nutty nutty world out there. NM is pretty much off the rails.
What depth did you go to?
Curious…who else is in negotiation/ already leasing in this area with with Alpha Energy?
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