I have mineral rights to 52 acres in Section 136, Block 13 H&GN RR Co survey in Reeves County, Texas. 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 approximately 3.5 miles East/Southeast of you in Section 219 on the other side of Highway 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 may be right about 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 and 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.