Block C-18 3 Yr Lease Expiring/2 Yr Option to Extend Lease?

Texas Mineral Rights Reeves County, TX
1

Hi,

Our 3 yr Lease for on: (A-3929 PSL C-18 Sec. 5 ) is expiring next month.

I believe lease is with BHP. (originally started with KEW drilling).

Is anyone aware if they are exercising the 2 yr extended Lease Option??

thank you,

Lea Pack Scalf

2

Lea- Go back in the main Reeves thread to Dec. - Feb. and there are some maps showing what BHP is keeping versus what they are trying to sell, which means they are unlikely to renew unless they find a buyer. BHP did not pick ip the option on the majority of our acreage.

3

Yes, BHP quickly exercised the 2 yr option on our lease in C-18 Sec 4.

r / Fred Klein

4

Thank You both Wade & Fred! I guess we'll find out soon enough next month if BHP wants to exercise the 2 yr option on our lease! Not worried either way, just curious. I know the demand is high in our area so it's just matter of time. :)

Lea Scalf

5

The 2 Year Option to extend date came & went last week, with no extension from BHP.

BHP never contacted us, nor sent us a check.

So, hopefully I'm reading the original Lease properly (which was originally signed with KEW drilling), and understand that we regain control of our net mineral acres!!! which is what we wanted. :)

6



Lea Scalf said:

The 2 Year Option to extend date came & went last week, with no extension from BHP.

BHP never contacted us, nor sent us a check.

So, hopefully I'm reading the original Lease properly (which was originally signed with KEW drilling), and understand that we regain control of our net mineral acres!!! which is what we wanted. :)

Best of luck with your property. Maybe a new company and new lease will be forthcoming.

r / Fred

7



fred klein said:

Thks Fred! KEW Drilling got our Mom to agree to a lower nma & royalty bonus in 2011. Our Mom has sinced passed away and now the lease is with me, my sister, and our cousins. And now that I joined this Forum and researched, I have much better understanding of the value of our NMA in this area of Delaware Basin in Reeves County. Thanks!!

Lea Scalf said:

The 2 Year Option to extend date came & went last week, with no extension from BHP.

BHP never contacted us, nor sent us a check.

So, hopefully I'm reading the original Lease properly (which was originally signed with KEW drilling), and understand that we regain control of our net mineral acres!!! which is what we wanted. :)

Best of luck with your property. Maybe a new company and new lease will be forthcoming.

r / Fred

8

I finally found that BHP map showing what they are "divesting" and their "focus area".

I believe our NMA in Blk C-18/Sec 5 are located in their Focus Area, yet they did not contact us to renew our lease which expired end of June. bit odd?