Petrohawk exercised their 2 yr extension on Sec 44 Blk 57

Texas Mineral Rights Reeves County, TX
1

After reading some of the comments I thought this might be helpful to others. The original lease was 9-9-11, on 9-8-14 I received a check for the delay rental for 2 more years. I wish I had known it was time, I would have discussed the low lease amount. $2,000 an acre was the 2011 price. The area is Section 44 Block 57.

I have had others calling and offering $3,000 per acre and offers to purchase land/minerals or half the mineral rights. I think it "not so bright" to sell either at this point in time. This particular lease is 33.75 acres.

This did belong to my dad and he passed away in May 2014. I had not dealt with any of the leases prior to now.

2

The option for the 2-year renewal is generally up to the company who leased the rights & is written into the original contract.

Your chance to renegotiate will come when the 2 yr extension expires.

As for selling, most say to keep the rights. They have the potential to be very valuable.

I'm looking at selling and I just got a phone call offering me $7,500/ac which is a LOT lower than the highest offer I have received.

I've seen advice that recommends selling for about 10 times the lease price...if not more.

3

Queena – thanks for providing the information. You describe the property as being ‘Section 44 Block 57”. Can you be more specific? Your section apparently is in the northern half of Reeves County. But there is more than one ‘Block 57’. Can you identify the survey name, i.e, T&P Ry Co.’ or ‘PSL’. Also, there may be a Township number, i.e., 1, 2, 3, etc. The single most valuable identifying number would be the Abstract Number, i.e., A-123… A-1234. It appears on the tax statement.

BHP currently has five rigs running in northern Reeves, all concentrated around Orla.

Thanks in advance – Later -- Buzz

4

Queena

A3035- A3036 I'm sure this is the same land. We just got the 2 year ext. from BHP. We own 32.499 acvres in the same sections.

Garland

5

Queena -- A-3036 locates you in T&P BLK 57 TWP 3 SEC 44, 11.6 miles SSW of Orla / 25.8 miles NNW of Toyah. Thanks Garland. Good luck to both of you. Later -- Buzz