What geological information there is available stresses the deposition of oil and gas zones in layers or horizons within the Southern Delaware Basin. Indications are are that there are more “pay” horizons than first estimated.
My own opinion is that there are portions of the Delaware Basin where the petroleum that can be extracted from all the currently reachable horizons at the present rate of recovery would yield the equivalent of a barrel per square foot of surface area. The total column of the petroleum bearing strata is coming back as thousands of feet thick. I think that they are still learning about how this complex and enormous shale oil field is structured.
We are a bit confused. Mom just renewed her 2 year option lease with BHP. I read discussion here about difficulties with lease and leasing companies going down due to low oil prices. News reflects concerns about fracking and increased earthquakes in Texas. Also see that drilling has declined from last year. We have no evidence that BHP has renewed the permit to drill either. So...why are we getting phone calls and letters wanting to purchase our rights at amounts that have doubled just in the past couple of months (i.e. from $7,000 to $15,000)? For 33 acres that is over $400,000 grand. From some numbers I have gotten from this source I figure (could be mistaken) that if you have multiple mineral rights owners involved in a large fracking area/play that you might be doing good to get $150,000 per yer for 33 acres if drilling actually happens…and that a fracking well most likely would only last 5 years…so, I am missing something/really off on my calculations? It seems if this offer for $15,000 an acre is real…is would be close to the amount for royalties you would get (maybe???)
Thanks Stephen, I know there has been some upward movement in oil prices but still don’t understand why the sudden doubled increase (we are now going on the 4th year of a lease…no action) in the offers to buy?
I have interests in Section 38, Block 52, T&P RR Survey, Reeves County. We have had 4 offers to lease. Does anyone have a suggestion of how much per NMA we should consider? Thank you all!
Thanks again Stephen for your perspective. We still have one year of a lease so we are locked in I guess. It will be interesting to see what happens when the lease is up from BHP. I will be relying on all this wisdom shared on this site to figure out how to find a lease if we are not approached.Thanks again to all of you sharing your experience!
I’d still like to hear thoughts from other mineral owners as to what they feel is reasonable, under whatever their circumstances or ownership entails. I would like to hear from other owners as opposed to someone looking to buy.
Marian, we have two tracts NW of Pecos that are not producing and have around 15-16 months left on them. And yes, it is an anxious scenario. I half way expect them to be drilled as the company will want to keep the acreage, I’m sure…but if not, back into the negotiation faze. Bottom line to remember is that there is one heck of a lot of oil in place in Reeves County. Do NOT underestimate this!
can we start a short dialogue about what might be a good/reasonable price per net acre for selling minerals in Reeves County. My research to date indicates that $9,000 to $13,000 might be the current, reasonable numbers.
Comments please…like do you think it will go above $13,000 within the next two years.
I second that, Bill, I’m interested, too. I’m assuming that’s $9,000 to $13,000 depending on where it is located. Like I said earlier, I got an offer to buy for $9,444/nma in Blk 51, Sec 8, which is leased at present.
William, the key issue is the location of the acreage. There are clearly better spots within the main NW-SE “fairway” that runs from Eddy/Culberson, down through Reeves into Pecos County.
The best, real offer I have recently heard is $10,500 per NMA…for acreage about 15 miles NW of Pecos.