My family has inherited approximately 117 acres of Section 193 from my grandfather. We’ve had it leased since mid 2000’s and that company was recently purchased by another. Our land is virgin. Centennial got a permit for a 12,700LF horizontal west of our property line back in May and it seems they recently had 3 more wells permitted in the last couple days, near our property. It also seems they have the lease on properties North and South of us. Our current lease ends in 2019. 1st question, What are the current bonus offers per NMA in the area? 2nd question, Should I reach out to Centennial directly to negotiate an offer for my family’s property? Or, wait for them to contact us?
Dear Uncle Our family has been in similar circumstances. We waited till the companies came to us and then hired a professional oil and gas lawyer. We hired Wade Caldwell from San Antonio and he did much better than we could have done. His price is reasonable and the results are great. This advice is worth what you paid for it. Good luck !
Your property is in Block 13, Section 193…that’s about 10 sections north of me (I’m in 182)…and Centennial is not the only E&P company competing for leases there. Oxy, Noble-Permian, Cimarex, Primexx, Colgate, and Henry Oil are interested in that area as well. I recommend you get a lawyer like Wade Caldwell to represent you and call the companies up…ask them if they want to lease.
, Reeves county, Tx
Thanks Jerry and Lawrence. I appreciate the guidance. I had a neighbor (Oil & Gas Attorney) help with the lease verbiage during the last renewal. But, he wasn’t familiar enough with the area or pricing. I’ll reach out to Mr Caldwell and see what he thinks. Thanks!
Noble recently extended several leases in E/2 of Section 193 to into 2019 - one with a description of 117.7572 acres. Noble acquired the leases from its merger with Clayton Williams Energy Inc. Do not get anxious about a lease expiring next year. A top lease will not be at the highest bonus and you are better off negotiating with open minerals. Most likely Noble will assign to another party or will drill.
Uncle, we are in Sec. 185, a few sections to the southeast of you. There are two Noble wells holding part of our acreage but Noble’s lease on remainder of our acreage expires in January. We are waiting to see what happens. In their last quarterly report, Noble said they were easing up on the Delaware Basin and moving their efforts elsewhere until more pipelines come online in late 2019 or 2020. Though they will have wells come online over the next two quarters, it sounds like they are not going to be doing much new drilling. Even so, they have been extending leases in our (and your) area. They have also assigned some to other parties.
As I said, we are doing nothing, just waiting to see what happens. Our two wells were fair to middlin’ (imo) but not fabulous. So that may play a part too. Best luck!