Need help with Reeves county blk c5 sections 1,2,11,12

General Mineral Rights Discussion
1

My family owns 21 net acres in reeves county blk c5 sections 1,2,11,12

They are offering us 2k per net acre for 3 years , 25% royalties. Seems like they have most of the land already under lease (they claimed 80%, then they claimed 90% so not really sure how much they really have leased).

I tried to get them to go up to 3k per net acre, but he said 2k was as high as he would go. Myinclination is to go with this, does anyone have any opinions if this is reasonable?

My next question is I'm guessing I should have the lease reviewed by an oil and gas attorney. Does anyone have any they recommend? and how much should I expect that to cost? I'm thinking the lease should to be reviewed to make sure that it's 25% of the gross proceeds, and nothing in there that we should not accept. Does this seem advisable? and is there anything else we should consider.

Thanks in advance for your help.

2

David,

North of your Sec. 12 in Sec. 13 I see 2 recent Horizontal wells that have been drilled. Am posting a link to Horizontal well API 389-33640 and a GIS map of your 4 Sections and surrounding area. Next post I will try to post completion report for API # 389-34125 if one is available.

http://webapps.rrc.state.tx.us/CMPL/viewPdfReportFormAction.do?method=cmplW2FormPdf&packetSummaryId=94726

0cbcb203e7caa903d0071bc2028c50c43588ca81.png600×600 16.3 KB

Clint Liles

3

David,

Since API 389-34125 was just drilled in February 2014 no completion report available. Am posting a link to the approved drilling permit for API 39834125.

http://webapps2.rrc.state.tx.us/EWA/drillingPermitDetailAction.do?m...

Looks like you are in a good area for exploration and development. I would suggest you contact Wade Caldwell(Oil and Gas Attorney). I do know he is working on several leases for Forum Members at this time. I believe he is a Reeves County Group Member. Just my opinion.

http://www.beclaw.com/core/Attorneys/GWadeCaldwell.asp

Clint Liles

4

Clint,

Thanks for your suggestion.

I contacted Wade. He charges a fixed rate of $3500 plus expenses. This is higher then I expected. Can anyone comment if this is a reasonable charge?

5

Dear Mr. Levitan,

The offer seems to be decent. HOWEVER, The devil is in the details, which means the lease form. With a poor form, you could easily, after time from flush production, to pay upwards of 50% of your royalty towards costs. This is unacceptable.

Best

Buddy Cotten

David Levitan said:

Clint,

Thanks for your suggestion.

I contacted Wade. He charges a fixed rate of $3500 plus expenses. This is higher then I expected. Can anyone comment if this is a reasonable charge?