What are Average NRA or NMA going for in southern Reeves Co?
If you are comfortable giving location specifics I think it’s more likely you’d get meaningful answer. Reeves is huge.
3 Likes
south of Pecos on HWY 17 about 12 miles.
Things are going to get less valuable heading south on 117. In general.
12 miles south is roughly Sec 193/192 of Block 13…Cty Rd 126 territory.
I’d say from Cty Rd 112 up to Davidson Rd its probably $8k-14k/NRA. Twice that pNMA if you are at 25% royalty. That should cover 12 miles south of Pecos. It’s hard to say specifically as its so dependent on current prod rate, how much has been produced to date, and signs that anyone will drill more wells in your unit.
If you have one old well and nothing going on it’s going to be at the low end. If you have a rig drilling or DUCs or permits or new wells, the high end. Of my completely speculative range. I don’t know the average, its just wetting a finger and sticking it up in the wind and guessing. All standard disclaimers apply about one random guy on an internet chat board. This is to sell mineral rights.
1 Like
Hi, NMoilboy! Question, what is an “old well” in this context? Just curious.
Arbitrary, not hard and fast. Anything that isn’t making “new well” levels of oil. For example a 2015 horizontal well making 1000 bopm versus a 2020 horizontal well making 10000 bopm. Basically if you are getting less current production your acreage would be worth less. In my opinion.
1 Like
Thanks! I was really asking more from a depletion concern than sales concern, but you answered my question.
NMoilBoy, heard recently of any interested parties in the southern Delaware actively looking to lease or buy minerals? Around 7 miles south-southwest of Pecos? Between Highway 17 and 2903? Thanks.
Russell_Jones, Have you gotten any interest to lease or sell your minerals? If so, would you care to elaborate? Thanks.
1 Like
7 miles SW of Pecos should put you in C8, C9, C10 area. That should be within the “known bounds” of where the Wolfcamp is productive (i.e. not further SW into Apache area). I’m sure somebody would buy (or lease) your minerals there, but I don’t know any specifics. That area is pretty much operated by Chevron or Centennial.
I’ve got an offer in section 37 block 4, Reeves county. There’s a $1000 sign on bonus for a 3 yr contract with option to renew for another 2 . Royalties at %25 does this seem fair?
Number_Nine, there are some fantastic gas wells with condensate and also oil/gas wells in that area…if they were my minerals I would hold out for something between $5,000-$10,000 per acre…the 25% sounds good…as Buddy Cotton says…NEGOTIATE
1 Like
Thanks again for you help Clint!
I wouldn’t consider a $1000 Bonus for any tract. That’s way too low. I usually get $10K - $12K
1 Like
We have received extremely nice lease bonuses for our 4 different sections in Reeves County. All at 25% royalty on a three year lease, and on either our lease or in the case of the mineral classified interest, a state of Texas lease which is very pro royalty owner. The least we went for was 6k an acre on the minerals classified section 28, that was a decade ago, and the state got 1/2 of that, and the most was 15K an acre with centennial. We went 10K an acre for the other two sections.
We profit very nicely from Reeves county right now. All our sections are producing. We have interests in the State Annex wells with BPX, the Barracuda wells with Centennial, and the Young wells with Oxy.
1000 an acre for Reeves County is an offer I wouldn’t consider for 2 seconds.
1 Like
Clint thank you so much for replying to me! I’ve been trying to gather some advice on here for weeks with no luck. When you say try and negotiate between 5 to 10 thousand per acre does that translate to the amount of the sign on bonus? Also curious as to how I could hire my own Landman to research the information given to me from the petrol company. As the mineral rights were unknown to me until very recently. I guess I’m confused because the paperwork defines what I am in possession of is 80 acres. I understand they can split mineral and land rights but after researching Texas databanks I can find no record of such a split ever taking place. Is this normal? Does one usually take a gas company at their word or is there a chance they could be dishonest about what they are presenting as rightfully belonging to my family? I worry by signing said lease I could relinquish my claim to more than they are showing.
Number_Nine, a word of caution. DON’T EVER BELIEVE A WORD AN OIL COMPANY/PRODUCER TELLS YOU UNLESS IT IS IN WRITING. THEY ARE NOT LOOKING OUT FOR YOUR BEST INTEREST. Yes, that is pertaining to the sign on bonus. You definitely need an oil/gas attorney or a trustworthy landman to help you.
Thank you Clint, I guess I figured as much. It’s so unfamiliar with me altogether. But of course can’t really afford any representation so I’ve just been reading a lot and looking for answers as questions come up. Definitely appreciate your advice.
This topic was automatically closed after 90 days. New replies are no longer allowed.