We got a call from Arris Oil...Our lease is up in December My sisters want to go with them, but I think we should wait and see if other offers come up. It is my understanding Arris has leased 20,000 acres in West TX. With no drilling yet.. I want to go with a more established company.
Anyone else been contacted by Arris? We are Block 5 Section 48....Wells surround us...What is a good rate for this area?
If you are in Abstract 5635 that's highest bonus I've heard offered but considering Arris is a new player and is talking to you about a top lease I'd definitely try to find out what the other companies working that area were willing to do before signing a lease with them.
In that area I'm thinking you are probably under lease now to BHP/Petrohawk, Rosetta or Atlantic. BHP has been paying options to extend leases nearby but dragging their feet on drilling. Do you know if any of the horizontal wells Rosetta and Atlantic permitted on adjoining sections have been drilled or at least have pads being built? It looks like the only current production may be two vertical wells in the section west of you that Rosetta now operates that are making a little condensate but mainly gas.
If you don't mind saying, is Arris proposing to pay just a part of the bonus at lease signing and the rest when your current lease expires? Unless they are willing to do a very short term lease or give you a drilling commitment that is too good to pass up I wouldn't let a partial bonus tie up my minerals.
It might be worth investigating whether the 20,000 acres Arris says they have leased includes any of your neighbors. The records that are available on line are only updated through 4/14 but I didn't see any leases recorded by Arris in Reeves Co.