Offered lease from Wheat Resources at $4500 pnma

#1

Hello all!

Have not logged on for a long time because my computer took a dump and I lost my logon information. With our password reset, we are back and up again! A company called Wheat Resources, LLC. has offered us $4500 pnma for three years with no extension and a 1/4 royalty. A record search revealed that this company holds several leases, scratch that... MANY leases in Reeves county. We own 5 acres in tract 93, section 247, block 13, H&GN. We have been absolutely deluged by offers in the last year. Our son who is a petroleum engineer has told us that Chevron in CA has pulled up tent stakes and move their operations to the Permium Basin. We suspect we are being low-balled and are seeking information from any members who know of this company or own land in our area.

Thank you in advance!

John & Angela

#2

Hello John & Angela...we leased to Wheat Resources in 2015 and were satisfied. This year we were approached by Wheat and offered 7500.00 to lease sections 270/271. I suspect as you do that you are being low-balled as well. Word of caution though...Wheat has representatives that are on this forum. Thought you should be aware of that. We ended going with Rosetta on the 270/271 lease because they only extended the Wheat lease for two years and leased for 10K pnma.

Good luck leasing.

#3

Rick,

Thanks for your reply. Your warning is taken as sage advice! We have suspected all along that it was the case. From everything we have read on this forum, Landmen are not acting in OUR best interest. We have not heard anything from Rosetta with regard to any offers. We do know that this area is highly sought after. Our current lease with CW (now Noble) runs out in July and we figure a solid offer will soon follow. We have discovered that an injection well and tanks have been setup on our property. And, there is a undocumented well on or near our property as well. We are glad to receive confirmation of our suspiction regarding low compensation.

Thanks,

John & Angela

#4

Some landman are quite friendly and not so company sided/driven if you know what I'm saying. We have a landman that works for us and she is quite friendly and helps us immensely.

#5

Also if an injection well and tanks have been set up on your property that could signify that Noble is starting drilling operations on your land and hence you probably will NOT be able to re-lease on the property. We discovered that for a lease deal in excess of 200k that the lease had been sold and operations were commencing, though how operations were commencing was not told to us. We are in the process or finding that out now. Three wells were applied for but none had yet been spud for section 38. Was a real bummer! That happened to us a month or two before the primary term of the old lease ended.

#6

Wow! Sorry to hear that. I have read a couple of articles on this forum that eluded to that fact. Question... how come so many companies are trying to lease this property with all of the stuff going on? So, does the company you have your lease with have rights to your property as long as they are drilling? Our lease was sold by Clayton-Williams to Noble Energy.

#7

I think Noble bought out Clayton Williams if I'm reading the headlines correctly in google search. We received several offers to lease 38 before Centennial did their fast move and did what they did in the last couple months of the primary lease they have with us. So I'm not surprised you are receiving offers this far out from July when your primary term ends. Have they been talking about "top leasing" from you? That's where when your primary lease term ends the new lease you sign in advance becomes effective. Only then do you receive your lease bonus. We have a clause in our addendum that reads "free of costs" were something like this to happen in a lease we already received the bonus on we don't have to return the bonus. Centennial has the standard 90 day continuous drilling clause in the lease that they must adhere to if they want to maintain the effectiveness of the lease. So they are permitting three wells already, depends on what they unearth, no pun intended, when they drill.

#8

I would ask a new question with your property legal description and nicely ask if there is any activity, example permits issued, on the property yet. I have always been answered by one of the nice people that have more knowledge than I do.