I have mineral rights to 52 acres in Section 136, block 13 H&GN RR Co survey in Reeves Co. CWEI has the lease until July 2016. I received a call from them wanting to extend the lease for another 3 years for $400 a mineral acre. I was wondering what you experts think of this offer. Not many wells being drilled in that area that I know about.
James - I'm certainly no expert but here's what we were able to agree on with CWEI. We signed a new lease form with them last month - 3 year primary, no extension, 25% royalty at $1,500 per nma. We are located approx. 3.5 East/Southeast of you in Sect. 219 on the other side of Hwy. 17. Our area has also seen little development. Wade Caldwell represented us and he's an excellent oil/gas Attorney, should you need one. Good luck with negotiations.
Fred- Thanks for the information you maybe right with hiring a lawyer to negotiate for us depending on their charge. CWEI paid $750 no extension 25% royalty for a two year lease with no extension last year. Seems like they want to try to attract owners with less money for 3 more years.
James-After working with different Oil/Gas companies for several years,we hired Wade Caldwell from San Antonio. His fee was very reasonable. He more than paid for his fee and we got a great contract. Good luck.
I have to echo Mr. Starnes statement concerning Mr. Caldwell's fees. We too, got a very good lease thanks to Wade.