We have a couple of different interests. One is in Ward the other in Reeves. Does anyone of an expert that can provide an evaluation & value of interest(s) based upon figure out what formations are below, etc.? We continue to get unsolicited offers but it has become clear we need some folks with expertise in this area give us a better idea of the value, projections, etc. We know that no one can guarantee anything however educated guess(es) are far better than those made from novices such as ourselves. Any suggestions?
I agree with Linton. Our family received a letter from John and he was very professional about it. His main interest was in the purchase not the leasing of minerals. We are in the process of dealing with JPE on Wolfcamp lease bonus and duration to drilling. We have heard of $3k to 8K for bonus as Wade mentioned below. We have a very good well currently on the property and the operator wants to go deeper. Any other information concerning bonus paid in the Sec 7 block 33 area of Ward would be appreciated.
Thank you for that information on lease rates Wade. Are you finding it is only in certain pockets of Ward or for most Wolfcamp plays in proven areas?
…and then of course if you have had any kind of production at all going on since the 1970s, you are really out of luck with getting multiple operators and taking advantage of the new reality of layers/strata. It’s really better if you are just signing your land up for the first time. Be smart all of you new signers.
Some leases are limited to certain depths from the onset, while others can initially cover all depths, but then at the expiration of the primary term, or other qualifying events, the non-producing depths revert back to the lessor. Lease terms are extremely important.
Depth severance clauses are I am surmising those that allow, say, one operator to go in at one level, and then below a certain level, another lease could be signed with another operator for a deeper level. That said, I guess only the truly clued in people turned the old Producer 88s from the seventies into something more complex in 2009. Guess there is just know way to get one in now after the fact.
I have received an offer for a lease in Section 1, Block 1 W&NW Survey from the surface of the earth to 100 ft. below the base of the Bone Springs Formation. $1500 nma, 3 yrs (2 yr option) at 1/4 royalty.
Will reveal the company at later date.
What is the current nma lease rate and surface lease rate in Ward County at this date? Also what are the different oil gas formation depths in the area. Thank you,
Hello Mike,
The formations encountered in the drilling of well 35719 in Section 1/Block 1 were: Cherry Canyon 5523’, Two Georges 8320’-8324’, and Wolfcamp 9799’-9805’ per Cimarex report.
GIS Map of Ward County Section 1/Block 1/A-326:
CLICK ON MAP TO ENLARGE
Clint Liles
Bonus is quite low. No reason to agree to more than a 3 year primary term without any option to extend.
I received a counter offer of $2500 per nma, 3 years for lease below 5100 feet the Bone Springs, Wolfcamp field which is leased.
Current nma lease rates/Money if any knows.
Also Cimarex said they are doing research on the area for potential wells???
Clint, thank you for the details, don’t know where to find that info or production records, I have looked. Tennis thank you.
Attention:Mike East…
Check your INBOX for message
Clint Liles
I just received a second offer for lease of nma starting at $2500 now up to $5000 per nma. Have done nothing yet, what offers have other had in the area.
I saw where Exxon purchased the Bass Family Minerals on 270,000 acres in South East New Mexico for $6.6 Billion dollars or $24,000 per acre,
Double Eagle purchased 23000 acres for $650 million in the Delaware Basin, $28261 per nma.
Clint thanks for your help.
Mike
Katherine,
$11,000 to lease mineral rights or to purchase your mineral rights?
If to purchase it maybe to low. To lease it is very good from what I am getting offered. Don’t Rush a decision as there will be more to follow and due you research on each company, some are flippers.
Mike
It depends on you location, amount of acreage available for sale but from what I have been offered per acre your offer of $11000 per nma is not that good for a direct purchase of the mineral rights. I have had offers all over the place with the highest being $21,000 per nma.
See my comment about U S Mineral Exchange who specializes in selling owner mineral interest with the buyer paying the commission, nothing out of your pocket. They do require a lot of documentation for the property to present sales. Below 2 days ago.
Has anyone had experience with Alva Energy, LLC? They are offering $11,000 per net mineral acre in Section 63.
Thank you, it is an offer to buy.
Katherine Saunders. I sent you a friend request but please email me if you have a chance.
Has anyone on here heard of or have experience with Advance Energy Partners, LLC out of Houston…or a Rick Swantner, Professional Landman? Googled the man’s name and it came up with an FB page and info that he was with some insurance business in Katy, Tx… Have received an offer from him with a [email protected] address and also an address out of Pineville, La. I realize there could be more than one Rick Swantner, but wondered if anyone on here was familiar with with either the Landman’s name or Advance Energy. Would appreciate any info on either.
Advance Energy Partners is a solid O&G company that is funded by EnCap Investments (private equity). Link to their site is below - check management team and areas of interest.
99.95 positive that any land staff that they may be using for leasing will be independent brokers and not members of the company.
I have been contacted by a landman(woman) for an INTEREST GROUP to lease our MR. They want to start their lease at 10,500 feet depth, wolfcamp. We have a working lease to 5100, a producing well with MR released below 5100 depth, Cimarex Energy. The orginal lease gave Cimarex rights to all depths but they released everything below 5100, 2 years ago in writing.
The interest group shows the level of 5100 feet to 10500 being held by production!! WE have no lease with any companies for the MR between 5100 feet and 10500 feet.
How do I find out who might be holding production on the level between 5100 and 10500, a 5000 foot spacing with no lease? Also I want to look at the production and profitability reports by the oil company.
Hope this is clear as I just received the information a half hour ago.
Thanks in advance.
Mike