This is my first post. I live on the coast, and I have not been to Reeves Co. I would appreciate any information about my property location and activity. It is located in E/2 Section 305, Block 13, H&GN RR Co. Our lease is up for renewal, and I’m curious what terms to anticipate. Thank you.
I would say you’re closer to the Alpine High play than the Bone Spring. The best offer I saw within the last couple years and nearby your property is $5,000/NMA from Richfield Delaware Exploration. If you wanted pricing from the BS, you could look further north and see upwards of $10,000/NMA on the fringe.
Your section is in blue and the best offer is green. The blue circle closest to your property shows an offer from June of this year, but is only $1,000/NMA.
Here’s what RRC shows on activity in your area. Your sections is outlined in green.
Centennial is now the operator of the well Atlantic drilled in the other half of your section but so far looks like it hasn’t produced much. All the activity northeast of you that was originally Clayton Williams and is now Concho Resources (COG Operating) includes some very good wells. Primex has also completed several good wells directly north about 3 miles.
Like the other post mentioned, it looks like lease rates vary a lot in that area. BPP Operating paid $9,000/acre bonuses on some State leases in Sec. 220 and 240 that are near those Primex wells, but Apache paid $800 to $1,000/acre for wells about the same distance south of you.
Kelifran, I am another property holder in E/2 Section 305 and am interested in what your experience has been recently with Centennial and the newly permitted site. Thanks
Casey591, I have spoken with their landsmen, both surface and mineral, and so far, they are ok. They said they have high hopes for Wicked Ram. Our lease would have expired Dec 6, but they told me it spud back at the end of Nov and they hope to start completing the well mid to late Jan. I do think they could be better at communicating with the royalty owners. I think it’s a good company, and they are very busy. How about you?
Centennial told us a well had been spud on a lease that was fixing to expire. They lied. Anyway we got even. 15K a nma even on a new lease once we’d figured out they had lied!
Wow! How do you find out the truth? If Wicked Ram hasn’t, I’d like to get even, too! Good for you. So disappointing.
I can’t get the link to post from the RRC website but the well was spud on 11/10/18 …there are two applications with the same name for new wells in 305. One was approved on 11/30.