I received a reply from from a lease company that states, “We just need that time to prove up the acreage in this area.”
Can someone tell me what this might mean? Specifically what does “prove up” mean?
Thanks!
A generic answer would be that they need time to drill a well to see if the reservoir they are interested in is economic. If they are trying to get a five year lease instead of a three year, then I would stick with a three year myself. Too much can change in five years. (or they should offer more for five years…)
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M_Barnes is it possible for me to send you a pm with our current situation, for a little more advice?
If you keep it rather generic, I can try to answer it here. I am not that familiar with WY.
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Where about are your minerals? And do you know which company is trying to lease? EOG, Welco/Laramie operating, or helis perhaps? I am familiar with the area. Hopefully your not in anadarko territory as some companies are waiting to see what happens with that the Wyoming ogcc, so they won’t lease it right now. Basically, they are trying to get them (wogcc) to changes rules that would ultimately force anadarko to finally drill or let someone else have it to drill.
We currently have a lease with EOG.