Block 13 Section 179

Texas Mineral Rights Reeves County, TX
1

Present lease is soon to expire. Any information about prices of leases around this area and lengths? Royalty–20 or 25%? Any activity around this area–future drilling?

2

Mel,

Directly to the north of your Section 179, a horizontal well was drilled in (Section 180) 2012 by Arabella Petroleum. It is a fairly decent oil and gas well. Link to Completion Report on Well API 389-33483:

http://webapps.rrc.state.tx.us/CMPL/viewPdfReportFormAction.do?method=cmplW2FormPdf&packetSummaryId=111939

Also a vertical well (API 389-32950) was drilled by J. Cleo Thompson; completion numbers are 75 BOPD/70,000 MCF gas.

I would definitely ask for the 25% royalty. Can’t say about the bonus money. Possibly someone else will chime in with some numbers about bonus money.

GIS Map of Reeves County A-299/Block 13/Section 179 and surrounding area:

3

Thanks Clint

Clint Liles said:

Mel,

Directly to the north of your Section 179 a horizontal well was drilled in (Section 180) 2012 by Arabella Petroleum. It is a fairly decent oil and gas well. Link to Completion Report on Well API 389-33483:

http://webapps.rrc.state.tx.us/CMPL/viewPdfReportFormAction.do?method=cmplW2FormPdf&packetSummaryId=111939

Also a vertical well (API 389-32950) was drilled by J. Cleo Thompson/completion numbers are 75 BOPD/70,000 MCF gas.

I would definitely ask for the 25% royalty. Can’t say about the bonus money. Possibly someone else will chime in with some numbers about bonus money.

GIS Map of Reeves County A-299/Block 13/Section 179 and surrounding area:

4

Hi Mel. We have acreage a few miles to the north of you in Section 185. We were leased in early 2013 by Clayton Williams for $1000 an acre, 25%. Our area was more active than yours at the time, however. Best luck!

Liz

5

Mel - 3k to 3500/acre, 1/4 royalty, no costs except your share of taxes. Don’t take anything less. We’re in Section 221 just to the southeast of you.

6

Thank you Wade. Current lease with Clayton Williams–expires around Nov. 15. We are dealing with them now, but haven’t heard back.

Wade Meeker said:

Mel - 3k to 3500/acre, 1/4 royalty, no costs except your share of taxes. Don’t take anything less. We’re in Section 221 just to the southeast of you.

7

CWEI is in the process of doing a farmout with Caza (Euro company), so might be an interesting leverage if their acreage in Block 13 is included (I suspect it is, but haven’t been able to confirm).

8

Wade–who did you lease to?

Wade Meeker said:

Mel - 3k to 3500/acre, 1/4 royalty, no costs except your share of taxes. Don’t take anything less. We’re in Section 221 just to the southeast of you.