Reeves County, TX - Oil & Gas Discussion archives

Summary of 8-4-15 GLO Sealed Bid Sale:

Not counting small Pecos River tracts, there were 27 other Reeves County tracts offered:

[http://www.energynet.com/govt_sale_listing.pl?sg=1554](http://www.energynet.com/govt_sale_listing.pl?sg=1554)

10 did not receive a bid. Of the remaining 17, there was more than one bidder on 8 tracts. The winning bid ranges were from $800/ac to $11,221/ac as follows:

# $/acre

8 - $800

1 - $850

1 - $950

1 - $1,400

1 - $2,510

3 - $3,627

1 - $5,100

1 - $11,221

17

Location, location, location… Later – Buzz

Clayton Williams had its Q2 conference call yesterday. There was some interesting stuff in there for those of us leased by CW. For instance, they own their own rigs - I did not know that. So they can get set up to drill pretty fast, or stop pretty fast. They also have gotten costs down so that they can make about the same profit at $60 as they did at $90. They are carrying some debt and they really want to pay that down, so selling some of their non-core acreage is not out of the question. If things get really bad, they might be willing to sell out of a core area. They are also willing to partner with someone but are not interested in a merger or acquisition. They are operating a rig each in the Delaware and Eagle Ford and hoping that prices recover some.

http://seekingalpha.com/article/3404955-clayton-williams-energy-del…

Liz

Also, does anyone know the going rate for leasing in the north Reeves county area? Sure would be nice to know what is happening in Reeves now days…

Louise - We just agreed to a lease in block 2 sect. 31 (about 20 miles N of Pecos, by the river) for 3 years at $2500 nma, 25 % royalty. We also had to agree to a 2 year option at $3500 to get it done.

My lease expired in January '15 and I’m interested in leasing again. I’m located what is called Pecos East next to the river. My land description: Blk 4, Tract 68, AB 1154, Sec 68 H&GNTR 1, 29.661acres and Blk 4, Tract 68, AB 3259, Sec 68, H&GNMID PT, 2.880 acres. Need a landman’s # also.

Hector, maybe someone will read this post and send you a private message. We share information here, but, it is a good thing to have all your info in your profile for some landman to contact you that way. Also, there is an area up at the top for advertising if that is any help to you. Good luck and a little prayer is helpful too…lol

My lease with a great company will expire this coming Wednesday. It is locate in Reeves county and legal description is Block 55, section 8, township 4 T &P Survey. Anyone have any ideas of companies that are interested and still leasing? Any and all help will be appreciated.

Louise

Louise- If you are in the hot areas of North Reeves, $5000 is a good starting point. I understand some of the recent bulk lease sales (one operator selling leases to another) in Reeves and surrounding counties have gone for $25,000/acre.

Craig, I can’t put that info out on this forum as it would be disrespectful. But, I can tell you that you are right on target. I am so very hopeful that the market will come back up, but, at any rate the lease prices are great, if you are in the right area…location, location, location. Oh wait, that’s what the real estate salesmen say.

Louise

Thank you Wade and Craig, I really appreciate the fast reply. I was told by a person with Texas Land Office about what to ask and what not to go below. As it is state classified and the state has to approve the lease anyway. It is close to the river, according to him…

But, once again, thanks for the reply… sure makes me feel better… the company I was with, just didn’t have the resources at this time… I was always happy with them, they were suppose to drill in March but, the drop in prices hit all of us pretty hard. But, it is great to know that some are still drilling…

Louise

Louise, what was the range of bonus that you were advised to consider?

I received Lease from SHAW Interests representing MDC Reeves Energy for our NMA in BLK C-18, Section 5 NW4/NW4. Only offered $1K per nma & 3/16 royalty. 3 yr lease with 2 yr Option.
does anyone have better idea of going rate per nma in this area?
1K seems low.
thank you,
Lea Scalf

I recommend you speak with Mr Caldwell. He assisted me with excellent results.

http://www.mineralrightsforum.com/profile/WadeCaldwell

Lea, We’re next door to you in C-18, Section 4 and received a top lease offer about a year ago of 2500/nma. It never materialized since the oil price dropped. However, I think our area is worth more than $1k/nma. I agree that Mr Caldwell can likely advise you correctly.

Lea/Fred – FWIW, MDC Texas Operator is drilling AMERICAN PHAROAH #1H, 389-34931 in PSL BLK C-9 SEC 17, A1518, spud 7-25-15. This location is about 3 miles S of your sections. I am not familiar with either company, but going by their name they appear to be affiliated. Later – Buzz

Cimarex Reports Second Quarter 2015 Results, 8-4-15

        [http://www.reuters.com/article/2015/08/04/cimarex-energy-idUSnPn9kL...](http://www.reuters.com/article/2015/08/04/cimarex-energy-idUSnPn9kLffj+88+PRN20150804)

Permian Region {excerpt}

Production from the Permian region averaged 595.1 MMcfe per day in the second quarter, a 51 percent increase over second quarter 2014. Quarterly oil volumes increased 45 percent year-over-year to 48,448 barrels per day and accounted for 49 percent of the region’s total production for the quarter.

Cimarex completed and brought on production 26 gross (18 net) wells in the Permian region during the second quarter. The 26 gross wells completed include five Second Bone Spring wells and 20 Wolfcamp wells (12 in Culberson area and eight in Reeves County). On June 30, there were three gross (two net) wells waiting on completion in the Delaware Basin.

Cimarex now has 11 long-lateral Wolfcamp D wells producing in the Culberson County, Texas. These wells were completed using 10,000-foot laterals and had an average 30-day initial gross peak production rate of 2,255 BOE per day (25 percent oil, 45 percent gas, 30 percent NGL). Also in the Culberson area, Cimarex completed a 7,000-foot lateral in the Bone Spring sand, which had an average 30-day initial gross peak production rate of 2,753 BOE per day including 1,870 barrels of oil per day.

In Reeves County, Texas, Cimarex has now completed seven long lateral (10,000-foot) Wolfcamp A wells. These wells had an average 30-day initial gross peak production rate of 1,646 BOE per day (50 percent oil, 28 percent gas, 22 percent NGL). Of note in this group is the recently completed Big Timber 57-25 Unit #1-H [PSL BLK 57 SEC 25/36, 20.3 miles NW of Pecos], which was completed in the upper Wolfcamp A and had an average 30-day initial gross peak production rate of 3,309 BOE per day (49 percent oil, 30 percent gas, 21 percent NGL).

Later – Buzz

Anyone know anything about the company Energen? Are they a good company or any bad reviews? Needing some assistance about this company. Thanks for any and all help…

Louise

The bonus sounds very low. 25% of course!

Thank you so much Kenneth, your information is very helpful. Just don’t want to be dealing with someone that flips leases…

Hello Everyone,

I was contacted about ratifying a lease that a family member mistakenly signed some years back for my mineral interests in Reeves County. The Lease seems pretty sound, but since I’ve never heard of ā€˜ratifying’ a lease before, I thought I’d throw it out to y’all and see if the terms seem fair. The lease covers BLK C-5 SEC 3,4,5,8,9,10 for 2 years at $1,000 nma with a 25% royalty.

Also, the production values for the 4 wells seems to indicate that they are being pooled. Interestingly, there is language included in the original lease that states that pooling would be limited to 80 acre tracts. I asked the landman brokering the deal about this and if I could get a copy of the pooling unit agreement if there was one. He said that while two of my wells are vertical he would need to send me an addendum to sign increasing the pooling units above 80 acres because of horizontal drilling. I thought that pooling was negative for mineral owners because it dilutes royalty, is that correct?

And finally, if I agree to sign the new pooling terms would that allow me the opportunity to renegotiate the signing bonus? It’s located SE of Pecos so I was thinking $1,500 nma? Can I even renegotiate terms for a ratified lease?

Thanks for your help!