In Culberson County, I leased out 43 acres of which half of the minerals belong to me. The lease is coming to an end around February 24th, 2015. There are activities going in the area including a well that have been completed.
I believe Cimarex is the company that drilled on the land. I understand the situation with the price of oil, but if I don't hear anything from the company at the end of the contrated lease, what should I do? what can I do?
What block & section is this lease located in?
I am located, at section 40 and block 59, Culberson County
Thanks Clint Liles for your quick research. I believed you are looking from an older map.
There has been a lot of activities going on in the area with a new well just completed between last September and October 2014.
I have been getting lots offers pertaining to the sale of the minerals. My advisor told me not to sell. other offers comes up as high as $5000 per mineral acres (as royalty purchase), some offered $3000 per mineral acres. Other offers asked me to sell them a portion or a partnership with them in the mineral royalties by offering cash in advance, I said no.
Unless these guys are a buch of crooks or I am loosing my mind.
I am worry about the low oil prices in the market that which force the company to close their operations and abandonned the property.
Here is the map of the latest activities going on in the area
Clint Liles said:
1409-RRCPUBLICGISMAPVIEWER.webarchive (82.3 KB)Louis,
After checking the GIS Map the nearest production I see is approx. 4 miles N/W of your minerals in Section 14. These wells N/W of you were drilled 8 to 10 years ago.
Nothing else in the nearby area of your minerals. You may be waiting a while before you get another lease. I see numerous dry holes that have been drilled in the past years in Block 59.
GIS Map of Culberson County Section 40/Block 59 and surrounding area:
Clint Liles
By the way, the map you looking at is a part of a consortium of 1 square mile or 640 acres pooling together for permit to explore.
According to many sources, there has been a lot of activities in the area including road, salt water thanks etc...
I hope my sources who are in the same land pool as I am are telling me the right info.
Louis Senatus said:
Thanks Clint Liles for your quick research. I believed you are looking from an older map.
There has been a lot of activities going on in the area with a new well just completed between last September and October 2014.
I have been getting lots offers pertaining to the sale of the minerals. My advisor told me not to sell. other offers comes up as high as $5000 per mineral acres (as royalty purchase), some offered $3000 per mineral acres. Other offers asked me to sell them a portion or a partnership with them in the mineral royalties by offering cash in advance, I said no.
Unless these guys are a buch of crooks or I am loosing my mind.
I am worry about the low oil prices in the market that which force the company to close their operations and abandonned the property.
Here is the map of the latest activities going on in the area
Clint Liles said:Louis,
After checking the GIS Map the nearest production I see is approx. 4 miles N/W of your minerals in Section 14. These wells N/W of you were drilled 8 to 10 years ago.
Nothing else in the nearby area of your minerals. You may be waiting a while before you get another lease. I see numerous dry holes that have been drilled in the past years in Block 59.
GIS Map of Culberson County Section 40/Block 59 and surrounding area:
Clint Liles
Louis,
This new map replaces the old 'Legacy GIS Map' that the Railroad Commission used. This is from the new Public GIS Viewer (Map) http://www.rrc.texas.gov/about-us/resource-center/research/gis-viewers/
Clint Liles
There are numerous Block 59's in Culberson. Which township?
Hi Wade Caldwell, good question.
Section 40, Certificate 3550, Block 59, Township 1 T & P Ry Survey 40 acres +/-
Wade Caldwell said:
There are numerous Block 59's in Culberson. Which township?
Thanks Wade, now we know what we are searching for.
Louis, the correct location in the county makes a lot of difference. If you could have said Abstract 2297 it is easy to find on the GIS map. Culberson County A-2297/Section 40/Block 59 T1S is the complete location.
Louis your minerals are in a productive part of Culberson County. Completion Report/initial production on well API 109-32674 shows a very good gas well/Cimarex Energy/Street Sense 40 Unit/5, 431,000 mcf per day. (Section 40)
RRC Piblic GIS Viewer Map of Culberson County A-2297 and surrounding area:
Louis
To answer your original question, depending on the language in your lease, if Cimarex has started drilling "operations" on the lease (which can be a number of different things), then the lease could technically be held beyond the primary term, and then as long there after as production is sustained.
Oops. I didn't see that Clint already posted completion information.
Hi Louis, This is RIck Linkenhoger. The Street Sense 1H came in at about 600 barrels and day and around 5800 mcf. A really nice well. I don’t think you will see any aditional wells until prices come back up. I talked with Jeanene at Cimarex and she told me we should get our first checks a long with Divisons Orders in a couple of weeks. Regards, Rick
Hi Rick, nice seing you again. Thanks for the info. I was wondering what went wrong with the well because I hadn't see or hear anything from these guys since the last time we talked. I am glad you picked up on the discussions to clear things up for a bit for me. Thanks for everything. I will let you know when ever I receive anything.
Thanks guys.
Louis
