Hi all,
Just got a lease proposal from Drovers' Trail Land Company LLC (don't indicate who they're working for). Offering $20/acre, 1/8 royalty for a 5 yr. lease. In Texas or N.D. this would just get laughs, but I don't know what the scoop is in Baca Co. Do have some interests in older wells in Sections 28 & 33 with Energy Alliance which seem to be on the way out. Would appreciate any info re what's happening and what the "going" terms are. Thanks!
Hello, I cannot answer your question about what is happening in Baca, but would like to ask what you decided about your offer and have you heard anything new about the area?
And a year later....... Just got off the phone with a landman from Drovers Trail Land Co. They are "ramping up" and made a new offer. Now offering $25/acre, 3/16 royalty and want a two year lease. The royalty and time frame both sound better. While the royalty is much more important to us than the bonus, v$25 still seems awfully low, even in "unknown" territory, at least in other states we're involved in. Has anybody heard anything new about activity in the County or had any lease offers??
I am no expert here, but this is a real low-ball offer in my opinion. If they are ramping up, you should be getting at least 20X that with 15% to 20% royalty. A landman's job is to get the mineral lease for as little as possible. Check the Colorado Oil and Gas Conservation Commission web site for uupdated information.
http://dnrwebmapgdev.state.co.us/mg2012app/
John Anderson "Andy" Davis said:
And a year later....... Just got off the phone with a landman from Drovers Trail Land Co. They are "ramping up" and made a new offer. Now offering $25/acre, 3/16 royalty and want a two year lease. The royalty and time frame both sound better. While the royalty is much more important to us than the bonus, v$25 still seems awfully low, even in "unknown" territory, at least in other states we're involved in. Has anybody heard anything new about activity in the County or had any lease offers??