New drilling in Carlsbad NM?


#1

I only found out that I have inherited rights to a section in Carlsbad this week when I received a letter from a landman wanting to lease my rights. I am clueless! What should I do? Is the any money to be made? Any comments would be greatly appreciated.
Signed,
Clueless in Cali


#2

I am about as clueless as you, but without the township, range, and section with ID, it is hard for anyone to even guess.
What was the bonus offered and the terms of the lease would make for a more informed answer as well.


#3

I also found I have inherited rights to a few properties in Carlsbad, after talking to them it seems they are in the beginning stages and are going to start drilling their first well next year. As for me, I’m going to let them do their thing and drill. Will renegotiate when it is in full production mode in 7 years. I understand there is between 500 Million to 2 Trillion barrels of oil down there in the shale rock. It will take a while to extract it all…maybe 50-100 years. So by the time they get operations going good you should be able to renegotiate terms. For now. my thought is…Drill baby!


#4

I’m right there with you on that! I have such a small about of acreage that it doesn’t matter. I hope they find barrels and barrels on my land. Drill baby drill! The lease is a little daunting but what do I have to lose by signing it. Good luck to the both of us.
Clueless in Cali


#5

Yes, my only reservation was that it combined three different properties that were in different sections of the town of Carlsbad…so I asked for 3 different leases, and they complied with that request. That way if it is something that one day I can pass down to my Grand children…each is independent of the other. But as you say it is such a small amount of acreage that it will not matter except if they have a massive pool of oil reserves there under the city…here’s hoping!