We have received two offers to lease our Reeves County, Texas, Section 14, Block 54 mineral rights. Both Primexx Energy and Panther Energy are offering $1,500 per acre and 25% royalty for 3 years, no extensions.
Both suggest they would move expeditiously to begin drilling. I was told that Primexx’s interest began after recent completion of a well about 4 miles away.
We are surprised by these offers, as the previous lease holder allowed the lease to expire this month with no renewal offer.
Any thoughts on the track record of Primexx and Panther, and their offers? Thanks.
Do you have the name of the well that is 4 miles away? We have minerals in Section 30 and 38 Block 54 Township 4. Would like to hear some good news you know
There will not necessarily be a significant difference between these companies. If they both have leases in the same section, then they will join together with one as operator and other as joint working interest. And later they will sell out to someone else. Your concern needs to be all of the detailed provisions in the lease. It is your only line of defense to maximizing your long-term income and protecting your rights. Which company will agree to a truly cost-free royalty provision? Not a proceeds royalty and not using term market price or market value as the latter are interpreted by courts as allowing costs to be charged back to wellhead. Tell each company that you are considering other offers and see how much more they will pay.
