Inherited Mineral Lease

My mother-in-law passed away and left my wife an interest in about 2100 acres of mineral rights in Gaines County Tx. A 3yr/2yr lease was signed in Jan. of 2014. as far as we know no activity has been done yet. How can we research this? The land is mineral rights only. All we know is from the lease paperwork. It is with Permian Basin Exploration Services, LLC.

Labors 1,2,3,8,9,10,11,12,13,23 and 24 League 285 Schleicher County School Lands

Labors 9, League 281 Hutchison County School Lands

We live in North Georgia so this is all new to us. Thank you so much for your help.

Mark

Open this map viewer http://wwwgisp.rrc.texas.gov/GISViewer2/

Click on the magnifying glass icon near the top of the page and choose "surveys" from the drop down menu.

This will open a pop up box. Click on county and choose Gaines. Enter "327" in the abstract box and then click on "query". A section highlighted in blue will appear on the map. This is Schleicher League 285. Hutchison League 281 adjoins to the east. Compare the symbols in and around your minerals with the map legend.

AJ

Thanks for your quick response, I was able to find it without any issues. It looks like it is surrounded by dry holes (if I read the annotations correctly). I does show a plugged oil well in Labor 12 (I think). I'm not sure what that's all about. I am still waiting for a response from Permian Basin Exploration Services.

Thanks again,

Mark

You are welcome, Mark. I believe that the oil company J Cleo Thompson may have some promising activity to your south. Look for J Cleo reference in this Gaines county group as well as I seem to remember a relatively recent reference.

Mark- As AJ mentioned, over the past year several horizontal wells have been drilled to the south and southwest of your interest. No results available yet on those wells. Since you said your lease was signed in 1/2014 as a 3 year lease with 2 year extension option, do you know if it was extended in 1/2017? Presumably the owner of the lease would have had to pay you to exercise that option. If they did not pay for an extension, and since there does not appear to be any activity on your property, the lease has expired. If the new wells near you are successful you could see a lot of interest in a new lease for a nice bonus per acre. Are you able to share what you were paid per acre for the lease in 2014?

This will be an interesting area to watch in the coming months.

yes my mother-in-law was paid $300 an acre and an additional $200 an acre for the extension. They paid all up front (I think). Is it common to do that? My wife didn't really know about this until after she passed away. All we have is the lease agreement to go on.

Thanks for your input,

Mark

Mark: I have mineral interests in labors 14,15,17,18 in League 285 which was leased in 12/13 for a 3yr. plus 2 yr. option. The lease was with a different company from yours. I did not receive payment to extend the lease.

Ronnie Reeves

It would be uncommon for the extension option to be paid up front because the reason companies want extension options is so that they have the option, but not the obligation, to hold the lease longer if they find they like the area or if the going rates have spiked in the area. Of course, it is possible they paid it up front, as that would essentially just be a 5 year lease.

Thanks I will try to research and find out (look into old bank deposits). We have started getting interest in these rights and that is what caused us to look into this.

We appreciate everyone's help with this.

Mark

Continental Resources is the leasing agent for the operator (J Cleo Thompson) who has been drilling the horizontal wells near you. If they're the ones interested then that is a good sign since they'd know the prospects for the area based on their nearby drilling.

Usually, for an extension to be valid, the operator should file a notice in the county records. You can access county records at www.texasfile.com. Search by the name of the person who signed the lease and you should at least find the original lease if not a notice of extension.

The fact that you've been contacted is an indicator that the lease has expired. Would be very interesting to know who has contacted you and what they've offered. Feel free to message me privately if you prefer. Thanks and best of luck with your minerals.

Unfortunately offer was thrown away. We thought it was still under lease. That's why I am now just looking into this. If we get any more offers I will let you know. It is so helpful to have this forum and everyone's input in this.

Thanks again

Mark

I need some advice . We have 19.4469 net mineral acres in Gaines County. All of Section 1 Block AX.
Oxy has offered us $300 a mineral acre. Anyone, know what minerals are leasing for in this area? We got the same offer in 2009. They want to extend beyond the 3 years. Any advice will be helpful. Beverly

Beverly,

I'm new to this also. Read through the posts on the other discussions. I saw anywhere from $300 to $500 an acre depending where it is located.

Good luck

Mark