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Reeves County, TX - Oil & Gas Discussion

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Reeves County, TX - Oil & Gas Discussion

Oil & gas discussion group for those interested in Reeves County, TX. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.

Members: 347
Latest Activity: 6 hours ago

Discussion Forum

Lease rates and offers in Reeves County, TX

Started by Reagan "R.T." Dukes. Last reply by Linton Tomlin 7 hours ago. 700 Replies

Use this post to share and discuss your lease offers.  The more we know about what is being offered the better decisions we'll all make.  Share your bonus, royalty rate, and any other provisions you…Continue

Keywords: lease bonus, lease rates, lease offers, royalty rate, Reeves County TX

Info needed for Section 1, A-1363, R. P. Altman Survey, Reeves County

Started by Jack L Tyler. Last reply by Wade Caldwell on Saturday. 2 Replies

We have received an offer to lease our acreage in this section for $3k per mineral acre and want to know if anyone is near who can tell us what the offers average here.Jack TylerContinue

Reeves County TX Oil & Gas Permits

Started by Reagan "R.T." Dukes. Last reply by Clint Liles on Saturday. 427 Replies

Post, discuss and share information related to Reeves County Oil & Gas permits in the replies below.P.S. Thank you to Clint Liles for championing the effort to keep us all up to date. Continue

New here and need info on Reeves County Section 7 Block C-20

Started by Queena Pollan Harvey. Last reply by Queena Pollan Harvey on Friday. 8 Replies

I lost my Dad earlier this year and he has a few acres in different areas of Reeves County. I have an offer on the smallest of the acres in Section 7 Block C-20 Public School Land. I have talked to…Continue

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Comment by lmoorhead 6 hours ago

Question regarding rig data -- does Red Willow have any active rigs?

Comment by Mike Miller 6 hours ago

"Continuing Operations" language can also be important for after a well has been drilled to keep the operator busy drilling additional wells on the property (so that they don't drill one well and hold the lease for several years without further development). Goes along with the Pugh Clause language delineating horizontal and vertical restrictions. Ideally not letting the operator having more than 18 months to do an additional well(s).

Comment by Jack L Tyler yesterday

Hi Y'all,

In your OGL contract, the paragraph on Continuing Operations must be read very closely. It can mean the holding of your lease indefinitely simply by the "stakeing of a well site".

On one occasion we could not get them to clarify Continuing Operations to the point, we had to add a clause to the contract ourselves which said; "Continuing Operations shall be constituted by a drilling rig set up where a well has been staked with the drill bit in the ground turning to the right." At that point, they conceeded. Since then, it is added to every Lease contract we execute.

Comment by Wade Caldwell on Saturday
Thanks Buzz.
"Actual drilling operations" likely means a rig has to be present and a bit in the ground. I don't think site prep qualifies.
If anyone hears any word on how the Jett Rink well north of Toyah does, I would appreciate word.
Lease rates in Reeves remaining strong despite the price pull back.
Comment by Buzz Van Meter on Saturday

RigData w/e 9/19 report shows 56 active rigs drilling in Reeves County:

 

Most

 

Active

BHP

5

COG

5

Oxy

5

Rosetta

5

Cimarex

4

Energen

4

J.Cleo

3

Patriot

3

Atlantic

2

Brigham

2

C-Williams

2

Conoco

2

Elevation

2

Endeavor

2

 

46

Later -- Buzz

Comment by M A Smith on Friday

Thanks to all of you for your comments.

Comment by Wade Meeker on Friday

Paul,

I'll defer to Wade Caldwell but it is my understanding that unless they are actively drilling, they can't hold the lease. setting a rig out there and just letting it sit does not hold a lease, a permit does not hold a lease, creating a pad site, does not hold it. They have to be engaged in the act of drilling a well and then completing it. 

As I said, I defer to the legal department beyond that.

Comment by Stephen Long on Friday

I believe Wade covered it! 

Comment by Paul Eggers on Friday

Stephen, are you saying that unless the well is spudded prior to termination of the primary term that the lease expires regardless of what work has been done on the well, such as site prep and permit?  M A Smith, we did not question it since well pad was built and we could see online that the rig was slated for our site plus we had a contract for seismic monitoring with third party.  I researched RRC site at the time and could find nothing that well must be spudded prior to termination of primary since we had similar language regarding lease.  Sounds like question for attorneys.

Comment by Wade Meeker on Friday

per Stephen's comment, a permit does not extend a lease. Unless they have a rig out on the property and are engaged in physical drilling activities the lease will expire after midnight on the final date of the primary term.

 

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