We got reached out to by a lawyer representing a client looking to purchase our mineral rights, so I was wondering if anybody new of upcoming activity in Eddy County, Township 25 South / Range 28 East, sections 11 & 12.
Thanks in advance for any inside info!
Working off the assumption that you are in:
Township 25 South, Range 28 East, Section 11: SENE, Section 12: SWNW + NWSW
No, not really anything upcoming. You should be getting paid by Mewbourne for the Hoss wells in Sec 11 and by Coterra/Cimarex for the Riverbend 12-13 wells in Sec 12. Hoss wells online in mid-2022.
There will be more wells drilled there at some point. Might take a while. But for now you should be making a pretty decent amount of cash flow if you are in pay.
If you feel like humoring me, curious who offered and how much? I do some mineral management for a family office who also owns in both of those units.
We have mineral ownership in sec 11 & 12, 25s 28e. Mewbourne has been paying for 2 other Hoss wells but haven’t paid anything for the 5 new Hoss 2 11 wells that have been producing since May 2022. They say they’re waiting on title opinion, but they have already accepted our minerals in that section since the other Hoss wells are in pay. I assume they’ll owe interest since there should be no doubt about our mineral ownership & I have provided the deed just in case there was doubt. That’s a large amount of money. Shouldn’t they be paying royalties to owners whose ownership they have accepted previously?
I assume they are running out a new DOTO on that for the new wells. The Wolfcamp wells (E2) should be the same as the existing one. The BS2 well is different (E2 of E2) but you’d think if you know the E2 then you know the E2 of the E2. But shrug. I kinda know how land dept operates, but not compared to anybody that ever worked in the land dept.
In same boat, have not gotten paid for new Hoss. NRI here starts with a whole bunch of zeroes…a whole bunch. I sent a note in July 22 and have twiddled thumbs since, probably should ping them again. But if you have a decent # of acres its a whole bunch of money. Like you say.
I have a reasonable amount of faith that oil companies will eventually get things straightened out. Mewbourne is running 20 rigs in the Delaware, they are probably losing their minds on poolings and trying to get drillable title. Doesn’t hurt to keep asking.
Yes nm oilboy, you are right about the sections.
I didn’t Get to speak to the lawyer, he just called and left a message. But he was representing tripeak energy.
I actually asked Somebody at mewbourne about those Wells, on January 20, and he said that they have already started production, now they’re just waiting on “title opinion” from the lawyers, which usually takes 4-5 months. ( he didn’t clarify 4 or 5 months from which date, exactly)
It would be REALLY wonderful if more wells were built on sect 12, western half, as that would pass through 2 of our sections, not just one. I think that doubles the amount you get.
Echoing Molly’s question, NMoilboy, presumably when they do start sending out checks for those wells, the first payment will include about 8 month’s of total production, to include all of the back payments, no?
In theory yes. They will catch you all the way up back to May 22.
Thanks for your input! Appreciate it!
Mewbourne is notoriously slow in sending out D/O’S. We have 8/9 new wells in two sections in New Mexico that Mewbourne owes substantial royalties to. 13 months in arrears thus far on several of those wells. Hopefully they get on the ball quickly. Interest should also accrue from their tardiness. Mewbourne is claiming their awaiting DOTO still, 13 months later.
We just got paid for 14 months for 2 Rustler Breaks wells in Eddy County. We already had 2 wells using the exact same minerals that are being credited in other Rustler Breaks wells where they made the 15 months payments. They claim they can’t make payment until the title opinion is complete, but the NM statutes, Chapter 70 reads to me that they should be paying those royalty owners already established in a title opinion for those minerals. No interest was included but it appears to me that they owe it. The 5 Hoss wells in Eddy county were all spud in May 2022 and they have the same claim of needing a complete title opinion, and again, our minerals were accepted for 2 other Hoss wells. There is no way that their batteries can be holding that much oil so they’ve been selling it. Again, shouldn’t they be paying interest when the payments finally begin?
I won’t pretend to know or want to read the laws of NM. Too much ADHD for that. But I think if you are the legal owner in new wells and they are not paying everyone until they figure out all of the legal owners (e.g. getting a title opinion) then they should owe you statutory interest equal to whatever…fed rate plus 1.5%…which for a while just meant 1.5%, but now is actually something.
Yeah, sure they are selling oil all along. Yes, I think they will owe you interest. No, I don’t think they have to pay you immediately if they are still working on the title opinion on the new wells. Yes, I think it will work out in the end.
Its hard being an oil company division order analyst. They just get yelled at on both ends and mostly are doing their best at $65k a year to handle a barrage of fractionalization and transfers. And waiting on wanker lawyers at $500/hr to goof their way through a title opinion. Its a thankless job that just gets harder and harder every year. They age in dog years.
As I said before, I have a tiny interest in the Hoss wells, and I am just waiting it out. Was told DOs are pending in Nov 22 and its April…I don’t know, I don’t get too upset about stuff like this. It’s just breakage like any other business.
Thanks for the update Mollye! Can you tell me, are all of these Mewbourne wells, in these same sections?
2 are in 23 24s 28e 5 are in 11 25s 28e 2 are in 23 24s 28e
Thanks for the response. Please share when Mewbourne does something re the 5 wells in 11 25s, 28e. I’ll do the same. That’s where my interests lie. Just wondering what’s taking them so long, and when we can expect something. Not sure if calling them again would be useful or not…
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