Reeves County TX Oil & Gas Permits

Hello I am new to all of this and I need some insight. I own 20 ac of a family owned 60 ac in Reeves co.Tx. I have been offered a lease for 3 years with an option to renew up to 5.

Area is block 39. Co is looking to put together 160 ac for oil and gas exploration. I am being offered 16k bonus,not sure if this is for 2 years or 3,due to contract wording. Also,when a contract has an option to extend up to 5 years. does that mean I can renegotiate in any way? Also, dose the bonus cover the entire lease time or is it by year? Should I request a specific time to receive royalty payments? How do I know the productivity of a well drilled on my property? How are royalties calculated for pooled land? They offered 800 pr ac and 1/4 royalty, is that reasonable? Lots of questions I know,and I probably will have more.I appreciate your help.

Clint_Liles · April 23, 2016, 4:49pm

Melissa,

The first thing we need to know is the exact location of you minerals in Reeves County. Abstract #, Section # and Block # please. Location can make a big difference.

Clint Liles

Melissa_Avery · April 23, 2016, 8:27pm

NW/4 section 39 block 13,A-464,H&GN RR co survey,Reeves county. I have 1/8 of this section.

Clint_Liles · April 23, 2016, 9:31pm

Melissa,

I see where Apache Corporation is to drill a wildcat well(API 389-35055) less than a mile NW of your minerals in A-463. http://webapps2.rrc.state.tx.us/EWA/drillingPermitDetailAction.do?m...

This is a wildcat/test well to see what's in the area. There has not been much exploration in the past in this area. I noticed where Apache is drilling some other wildcat wells in the surrounding area. I wouldn't be in too big of a hurry to lease until these wildcat wells are drilled. Reeves County is one of the better Counties in the State of Texas for exploration and production at this time. I would say that $800 per acre is a lowball figure for Reeves County. Double or triple that amount sounds better and a 3 year lease is sufficient not 5 years.

GIS(Geographic Information System)map of Reeves County A-464/Sec.39/Blk 13 and surrounding area:

Well # 35177 in A-469 is also a wildcat well being drilled by Apache Corp.

Clint Liles

Melissa_Avery · April 23, 2016, 9:43pm

Thank you so much for the information. How do I find information about the wells Apache is drilling ?

Melissa_Avery · April 23, 2016, 10:01pm

How do I find out what the results of the exploration are, and then what they mean for me?

Clint_Liles · April 23, 2016, 10:58pm

Melissa,

I would post the question to the Reeves County Members and ask if any of the Members that live in Reeves County know if these 2 wells are being drilled at the this time or if they have been completed. After the wells have been completed it may be several months before a Completion Report is filed. As for what it means for you no one can answer that question until some more information on the results of the wells become available.

This link is to the approved drilling permit for the wildcat well Apache is drilling in A-469:

http://webapps2.rrc.state.tx.us/EWA/drillingPermitDetailAction.do?methodToCall=searchByUniversalDocNo&universalDocNo=490077044&rrcActionMan=H4sIAAAAAAAAAL1QwU7DMAz9mnGM4mTdysGHCsGZjYkdqh2yNuoipU3lpAKkfjxuEdLoOO-U5-eX52ePICWqESQgPBBVRZVc6PYV1aU84cx_2LPp-6gEt0VMJlmRPsUQV7rIJSsUrtTL87FgqCdYk_Pedc2rpdaluBssff3YijqwaI2tTZdQH8KT8Z6JDMmmgbpDeLOGqgtTOcqbNGWcuwU1UfSGTPtu_GDnkJxB5486g-12qjI828Z18ejSZMZuf2pQi_pavxgL9ztC_F1-g71pLF0t-e9F4FQudVNYhFEhyFEzWKMcM343TNz-vss9vwGaMGwcYQIAAA

Clint Liles

Melissa_Avery · April 23, 2016, 11:01pm

Thanks again. This has been a big help.

Clint_Liles · April 25, 2016, 2:20am

Completion Report

http://webapps.rrc.texas.gov/CMPL/viewPdfReportFormAction.do?method=cmplW2FormPdf&packetSummaryId=152588

Clint_Liles · April 26, 2016, 12:50am

April 25, 2016

http://webapps.rrc.state.tx.us/DP/drillDownQueryAction.do?fromPubli...

http://webapps.rrc.state.tx.us/DP/drillDownQueryAction.do?fromPublicQuery=Y&name=BIG%2BSKY%2B55-16&univDocNo=490096813

Louise_Welch · April 26, 2016, 2:33am

How close is Cimarex 55 section 16 twsh 4 to section 8? Thanks for any assistance.

Clint_Liles · April 26, 2016, 3:16am

Hi Louise,

Section 16 is about 3 to 4 miles from Section 8.

Clint Liles

Louise_Welch · April 26, 2016, 4:41am

Thank you so much for this picture. I appreciare your hard work you do for all of us. Again, thank you. Louise

Louise_Welch · April 26, 2016, 6:42pm

Clint, how about another one, EOG Resourses at State Jobe 40-6 blk 55 twnh 4. Well #1 abstract 3148 and 3149. Wondering how close that is to section 8, 55 t 4. Thanks for all your help. Louise

Clint_Liles · April 26, 2016, 9:50pm

Hello Louise,

Glad to help you anytime.

Section 8 is about 6 or 7 miles from A-3148/3149.

Clint Liles