Iskandia sent me a letter for our family oil lease in Ward co. They are saying they acquired our lease from Nobel Energy. They are asking me to sign a new lease on the property’s. A lease my family has had since the 70’s. They say they will double my loyalty. But say the new lease is only down to cherry canyon. And not to wolf camp. Where should i go for more information? I don’t see why i would need to sign a new lease. The locations are Section 123 block 34 I would appreciate any help.
Iskandia bought out Noble’s shallow wells in several counties. Noble acquired these wells from Clayton Williams which owned Southwest Royalties. Many of these leases are limited to shallow formations - Cherry Canyon and Delaware. If your shallow wells ceased producing, then the lease(s) would have expired and Iskandia would need a new lease. You should be paid a bonus and 1/4 royalty. Bonus for shallow rights will be far less than the bonus rates for wolfcamp. Callon is operating horizontal wolfcamp wells in NW/2 of Section 123. There are no horizontal wells in the SE/2 of Section 123. Presumably you have 2 leases on your minerals in Section 123 - an old lease on shallow rights and a more recent lease on deep rights. Review your leases and records and be sure that you understand which companies own your leases and how many net mineral acres you own in Section 123.
Thank you for the information. The api numbers in the property are 42-475-10940 42-475-30885. Not sure if that helps. We do have a deep lease. You are right. But is this something to hold out for, to get the deeper wolf camp?