We’ve been contacted by CW for a lease extension. They offered $500 for 3 years to begin with, then increased that to $1000 for 3 years. I know they are notoriously cheap, and they are also probably about the only game in town for us. On the other hand, since we were leased by them for the same amount 3 years ago, they have dug some successful wells around us, and built pipeline to within a mile of us. So we are in a decent position, I think. We have 1/4 of some 450-plus acres. (SIL has the same.) We’re not happy with the $1000 and three years - would like no more than a 2-year extension. So at this point, we’re still thinking about what to ask for. Block 13, Section 185.
Liz- Got your email and will respond. An earlier post asked about Arabella. Use the search feature in the upper right before you do anything with Arabella and look at their SEC filings.
Just received an unsolicited offer to purchase acreage north west of Pecos in 54-4. It was over $10K/acre and kinda surprised me. Not interested in selling, but found it very positive. I wonder if some of the recently drilled wells in the immediate area have surprised to the upside?
Anyone?
Liz, thank you very much!
Daniel – which Block ‘56’ survey, PSL or T&P? If T&P, need the Township too?
Later – Buzz
Clayton Williams says it is going to resume drilling in the third quarter this year - one rig each in the Permian and Eagle Ford. There’s some hope out there for us Clayton Williams lessors!
http://www.naturalgasintel.com/articles/102701-clayton-williams-rai…
We also received an unsolcited offer to purchase our mineral rights for $2,500 per acre. We are also NW of Pecos in Sec 24, 29 and 30. The guy I spoke with was representing a company named Alcam Resources who look like some kind of broker who buys and resells properties. We said thanks, but no thanks. It is currently leased to BHP and not part of the Silverback deal. If activity continues to improve, I would think it would lease for that amount when it is up next year.
I was wondering if there is anything going on in Block 56, sections 30,32,36 and 38 ? Or any activity around that area.
Thanks, Danny
I am interested in seeing if there are any recent articles out discussing fracking techniques and upgrades. Last year there were immense improvements in drilling and completion techniques with the great results well discussed, but this year I have not read very much. If anyone should see an article or two from the last 60-120 days, please link us up!
T3
Daniel – you’re in a seemingly ‘hollow’ area surrounded by mostly permitted wells that have likely been delayed by the 65+% pullback in drilling in Reeves County due to low oil prices. Surrounding operators being Cimarex, Centennial, Resolute, BHP. See if you can locate your PSL BLK 56 TSP3 SECs 30-32-36-38 on the RRC map viewer:
http://wwwgisp.rrc.state.tx.us/GISViewer2/
If you ‘zero-in’ enuff, you can see the well locations.
Later – Buzz
Our lease agreement with Cimarex is up end of this year… We will see what offer they come up with… 3 years ago, it was a really good lease…
Danny
Daniel,
If you will send me an email at MRElender@gmail.com, I will get you in touch with a broker working that area for a different company.
Thanks Mike
We feel Cimarex is going to come back with a good offer based on what I have been told by some other mineral rights owners with us.
Just had an offer from some company in Arlington, TX for $9,444/nma to purchase in BLK 51, SEC 8, Reeves County. I declined.
Daniel,
Do you have open interest in those Sections? I can put you in contact with a company that would likely make an offer.
thanks again. yes you are correct not much action up there but there is a pipeline that is suppose to be under construction. I will check my message. We were shocked too…maybe just to get us to call as the letter said up to $15,000. Mom has gotten a number of calls and letters lately, I wonder if these folks track deaths as my dad passed away a year ago today? The Mineral rights are in her name only though.
Glen- The search feature in the upper right corner of this page. You can quickly find all threads that have discussed Arabella. Phyllis- Orla west to the Culberson line, up and down the river, around Pecos, Block 13, and around Toyah. But this is not an exclusive list.
It is hard to guesstimate how much royalty would be involved as we won’t know who the other “owners” involved are until the order happens for a well to be drilled is my understanding let alone all the politics and economics, as well as us being in CA. So difficult to determine what to do in this regards. Mom is moving into assisted living so is it worth for us to hold onto this (when I see some of you discussing how difficult it is at times to get leases) and she won’t benefit from this an inheritance from her parents? I am sure others have grappled with similar dilemmas.
The $15K/acre number is easily the highest I have heard in Reeves County. If I am not mistaken, your acreage is just northwest of Pecos in an area previously developed by PetroHawk, now BHP Billiton. The number is semi shocking to me, to be honest.
Please check your personal messages, as I have sent one to you.