Has anyone leased in Block 60 in Culberson recently? I'm trying to find out what the going rate is? If not Block 60, anywhere close. We've received an offer of $1100/nma. Thanks.
Melissa, there is more than 1 Block 60 in Culberson County. Could you be more specific with the legal description, please?
Sorry...I should have been more specific! Block 60, T2S, T&P RR Co Svy. Just west of the Reeves Co. line.
Melissa - I feel certain that you can do better than $1100/nma in Block 60.
What section(s) in Block 60?
Block 42, PSL, we just got an initial offer of $1650/nma
have you leased your acreage yet?
if not, could you provide the section #(s)
Our family has owned acreage in two tracts in Culberson for around 80 years and today I received our first offer to lease in one of the tracts. The two are in contiguous sections so I suspect they will want both.
The tracts are AB 3862 BLK 60 TWSP5 T&P RY and AB 4062 BLK 42 SEC 46 PSL
The acreage is about 10 miles west of the Reeves County line and 32 miles south of the New Mexico line.
I believe we are on trend to the NW of Apache's Alpine High acreage and south of most of the activity in the NW of the county over the last couple of years.
Would appreciate any feedback as this acreage has been invisible for decades.
Stephen,
I was going to pull up your minerals acreage on RRC GIS Map Viewer and check the area for activity but apparently the Viewer is down for maintenance.
Clint Liles
Thanks, Clint! You have been such a terrific help to so many on Reeves County site!!!!
I really am pretty pumped as this literally is the first time we have an offer.
The Apache Alpine High trend is headed our way and of course the huge results just north of us (in the NE corner of Culberson) have been terrific.
I'm sure the acreage will be productive, but until proved up, hard to know the value. Is $1,650 an acre for 3 years good? More importantly who is going to operate, right?
Stephen,
I'm not sure I will be able to check on your minerals tomorrow as the RRC generally shuts down their website every Sunday (and also Wednesday evening between 6 PM and 7 PM) for maintenance. Possibly Rockman, A.J. or Wolfcamp Shale can help you tomorrow. I think they have subscriptions to Drillinginfo.com. At this time it's hard to say what a reasonable bonus amount per acre might be. I don't know what kind of production and the type of wells being drilled in that area. Possibly someone else that has minerals in the same Block or area as you will chime in.
Can you share the name of the Producer/Company that offered you the $1,650 per acre to lease your minerals?
Clint Liles
Charger Shale Oil Co. LLC out of Midland is making the offer. Never heard of them.
I am always reluctant to lease to a smaller outfit as this play is a "big boy's" game, IMO.
Wow! Thank you so much!
Now if I can just figure out what is top dollar.... Ha!
Stephen,
Looks like Charger is the 'new kid in town'.
http://www.ogj.com/articles/2016/09/charger-shale-oil-jv-targets-permian-basin.html
Clint Liles
Be patient. The first offer is generally a low ball offer. Wait and see if some of your surrounding neighbors will chime in as to the amount they are receiving. And you might want to contact Wade Caldwell(Oil and Gas attorney) to help you with a lease. I'm sure he is a member of the Culberson County Group. He is very well respected.
http://beclaw.com/attorney.php?pg=g-wade-caldwell
Clint Liles
Thanks again!
Let's face it, a lot of Culberson is new territory and early leases will be "cheap". Typically the longer we wait, the higher the price....
Charger is made up of some of of the old Tall City I personnel.
Stephen,
To the North of your minerals about 3 to 4 miles Charger Shale Oil Co. has 2 approved permitted locations to drill horizontal wells. One is in Block 42/Section 25-Pemitted in Nov. 2016(API 109-33002) and the other is in Block 42/Section 34-Permitted in Oct. 2016(API 109-32990) both permitted for 9000' into the Wolfcamp formation.
GIS Map of Culberson County A-3862/A-4062 and surrounding area:
CLICK ON MAP TO ENLARGE
Clint Liles
Thanks! In fact, I just found out they have a rig about a mile and a quarter to the north of me. Charger is well funded and clearly very active.
I just went to the RRC site and saw several wells permitted nearby, so quite exciting.
Talked to the landman earlier and he said that the $1,650 per acre bonus was dictated by the RRC, as the previous lesser amount was not acceptable.