@Sctosy Your offer seems incredibly low.
Talk to the Landman for sure.
I agree with J.Mathews. I would take my time before making any leasing decisions. The activity to the SW of Pecos has been picking up.
Personally, I’d be reluctant to lease anywhere in the county for less than $1,000 and a quarter.
Just my 2 cents worth.
Scotsy: Block 55, if it is truly Block 55 and not 55-5, is over on the Culberson County line. I own over on the west side of Reeves County. The area is picking up. PetroHawk was recently permitted in Block 53 and would probably want to lease Section 2 in Block 55. You could call Drew Reid at the Texas GLO Relinquishment tract office 512-475-1354 and ask the favor of his advice for all your tracts. You should definitely get 25% royalty anywhere in Reeves County, I think.
Hmmmnn…still not quite sure where that is. Well to the west?
@ Stephen-I’m not sure where the 5 acres are located. The 339 acres in Section 2 are southwest of Pecos between Toyah & Hoban, south of I20 but no offers on that…yet.
8-0
Sorry for mis-typing your name.
Thanks guys for the advice. That was what I was thinking too-wait a while before making a decision.
Thanks Buzz for locating the 5 acres!
I own Section 68 Block 4 on what is considered Pecos East along side the river in Reeves County. Oxy just staked a well site a few 100 yards from my property. The site says Oxy Heard #68. Does any body know what is the on going rate for acreage in this area.
Thank you “out of state” for the info & phone #!
Please help me educate other mineral owners!
Kevin, thanks for linking that article. Everyone here needs to have their eyes wide open with Chesapeake.
We leased to them a few years back and they screwed it up badly. It cost us some money but I was just glad to be rid of them.
They recently “cold drafted” many millions in lease bonuses in the Lynn County region.
Zero ethics, IMO and poorly managed.
A “cold draft” as I understand the term is when the company agrees to lease from a land owner and then fails to pay the draft. It ties up the land and does not allow the mineral owner the chance to lease to another company. I have a close friend who leased to Chesapeake earlier this year in the Tahoka region. They never saw a dime from Chesapeake.
What worries me on behalf of the Reeves mineral owners who are leasing to Clayton Williams Energy is their association with Chesapeake in the farm-in partnership. Chesapeake has been accused of corruption for years. Wouldn’t a supposedly reputable operator like CWE worry about being scammed by Chesapeake themselves …as so many others who do business with them claim to have been … or are they two peas in a pod? Just a word of caution …
Thanks for the article, Kevin.
What is “cold drafted”?
I don’t think so. Taking a farmout on some acreage puts CWE in control of the acreage and on top of all responsibilities.
Newbie to the site and was curious if there was a Culberson county discussion group? I have been unable to find one.
To Kirk,
I own on the west side of Reeves, very close to Culberson/Reeves line. The activity seems to be picking up. What part of Culberson are your mineral interests in ?
Sharing lease info w/Reeves County members:
Property Located: West Half of Northwest Quarter (W/2 NW/4) Section 58, A-5670, Block 4, H&GN Ry.Co.Survey containing 79.45 acres
Terms: $200/ac … 1/5th production… leased for 3yrs w/2yr option at the same rate
2nd time leased: Started 1/2011
1st time leased: 5 yrs ago at $100/ac.
Dave – thanks for sharing. Your property is located ~5 miles NNW of Pecos. The $200/ac deal was struck over a year ago… suspect much higher bonus in that area today. Seismic is good news… hope you have a well drilled soon!
Later – Buzz
Question…Does a Landmand need to secure all leases from a particular section before they start looking for anything? We have a 4% interest in 3200 acres (5 sections). They are sections 42,43,44,46 of block 45 in Culberson county and section 4 block 53 in Culberson and Reeves county.
We have already leased section 42 back in late 2010. I was curious how the process goes from there. Do we receive any type of update, do they need to get leases from 100% of the owners before they do anything? Just wanted to have a better idea of what happens after you sign a lease.