Received notice to sign letter from Primexx re: Denton unit 68-107W #1H; pooling not to exceed 320 acres of 480 owned (IF I understood it right). Primexx was the original leaser, but sold mineral interest to BPP Acquisitions which is the current holder of the 480. Our acreage is section 68 block 13, A5759. Recommend signing?
No…I recommend you get a good lawyer to represent you then wait them out… IF the well is critical to their operation or they think it will be highly profitable…they’ll be back with another offer.
ol’Lawrence in Verhalen, Reeves county, Tx
Primexx permitted the Denton well on 320 acres in W/2 of the section and spud the well in September. It is a one-mile lateral. It is reasonable to have a unit on the 320 acres, as that allows more wells to be placed close together. BPP Acquisitions is participating in a wells as non-operator with Primexx. You might want to ask if the unit is limited to the Wolfbone (Wolfcamp & Bone Spring formations) and not all depths or add that limitation to your letter. Most likely a different unit will be formed on the other half of the section. Your lease is not going to expire with a producing well on that acreage. A-5759 is not in the well as it is in the E/2 of Section 68. The well is in A-5487 and A-1987. Look at the RRC website for the Denton unit well and make a file with the plat, permit and other data. API 42-389-37440. Get the completion report once it is filed. This is important for your records and to get an understanding of what is going on. Also, the well location is in the Section 69, but that section will not be in the unit.
Thank you, Lawrence! We shall do exactly that. I appreciate your comments, perspective and knowledge so very much.
WOW, TennisDaze! Thank you so much for that background information, most all of which I did not know. I do so appreciate the time you took to fill me in and I shall pass along your comments to the rest of my family. Your knowledge is just everything. I don’t know where we’d be if it were not for this Forum. What a life-saver!