Mel, I don’t think any of us knows what acreage is included. I’ve attached Clayton Williams press release. You’ll see that it says, “Substantially all of the acreage subject to this agreement was associated with a farm out agreement between the Company and Chesapeake Energy Corporation through which the Company earned a 75% interest in certain leases (the “Leases”). Subsequently, Concho acquired the remaining 25% of the Leases.” So if you were leased by Chesapeake in the past your chances of being part of the swap are better than if you weren’t.
Clayton Williams issued another press release today that says its strategic review with Goldman Sachs is still ongoing, and that this deal with Concho has nothing to do with that. So it is still possible that there will be other deals/sales forthcoming because of that review. Or maybe nothing - CWEI has always said they may just lay low and keep their powder dry.
Here’s another map, farther to the north. Things mostly seem to fit but I am not as sure of this map as the other one. There are random bits of green that look very spotty. At least my section (185) doesn’t belong to Conchoin this map, though the sections to the N, NE, and E of me do. That surprises me. I didn’t know they had changed hands yet again.
Just had a thought. CWEI seemed fairly anxious to lease with us late last year. We were wondering if CWEI wanted us for some reason having to do with negotiations with Concho. This map shows that Concho now has the sections to the N, NE, E, and SW of us - new info to us. Now we’re thinking the lease does have to do with Concho.
Liz - I bet there’s more going on in the background than just the Concho/CWEI acquisition itself. Concho probably did a little “horse trading” (cash and/or acreage) with other operators to offset some of the cost in their deal with CWEI. I’m sure there’s lots of jockeying going on behind the scenes right now between multiple operators that none of us are aware of…yet.
FYI, I just sold a couple of small tracts and received what I believe was an excellent price. Holler at me if any of you guys have a desire to consider a sale. I was pleasantly surprised!
Stephen, I want to ask you about your offers. You are east of me. Do you have mineral classified land? I have had offers for my tract. Please email me at junebils@aol.com.
I have a track of land in block 13 section 136, CWEI has the lease now and wants to extend the lease. What do you think a good asking price would be to extend for three more years.
In the north half of section 212 Oxy has my lease (from a Chesapeake farm-out). They have told me that CWEI has the majority interest in the north half (that’s why they drilled in the south half). I have 3/8 mineral interest in the north half of sections 212 and 186 and the east half of 138.
James, as opposed to exercising an option to extend a lease, it sounds like CWEI may be wanting to perform a lease amendment whereby they extend the primary term of your lease for three years beyond when it is currently set to expire. Depending on when your lease expires, three years beyond that date can be quite a long way away. Should you choose to proceed with the amendment, I would use this as an opportunity to amend other portions of your lease that may not be as favorable as you would’ve liked the first time you signed, and I would cut the extension period down to 2 years. As for lease bonus, you could ask for $3k+/acre, but your ability to leverage competing offers is somewhat limited because (depending on when your current lease expires) a third party that takes a top lease on the property does so with the risk that a well gets drilled within the primary term of your existing lease. Feel free to send me a message if you want to discuss strategies further.
Liz M … did you ever find out whether you’re still leased to CWE … or whether you were “exchanged” in the recent Concho exchange? Does your lease require CWE to notify you if they assign you to someone else? I hope you’ll keep us posted. Thanks!
I’m extending an existing lease (it expires the end of April) with J. Cleo for only a one year extension. Also, I completely changed the lease language to one that is way more favorable to me versus the current one.
Thomas, the drilling permit was issued to Cimarex on 6/28/2014. I could not find any information about a well being spud on DrillingInfo.
The two wells that you are seeing appear to have been drilled in 1953, and the last production was on 4/1/2001. They were being operated by Licon Oil Co. Cumulative oil production was 49,960 bbls. If you have any other questions, feel free to send me a message.
Thomas, as far as we know we are still with CWEI. Buzz was kind enough to post a link to a couple of Concho maps that show where the trades were. I pasted the Concho maps over GIS maps - as best as I could, considering the Concho maps were a different scale and pretty crude. I do not guarantee the results, especially towards the edges of the maps, which seem to get more distorted. But many pieces seem to fit pretty well. Anyway, here are the links to the maps. They are also available a page or two back in this thread. We do not show as traded, not surprising because we were never held by Chesapeake.
I should have added that the yellow areas were Concho’s before the trade. The green areas are new Concho areas as a result of the trade with CWEI. If you go to the actual report, linked by Buzz a couple of pages back, you will see that many areas that Concho held before the trade are no longer theirs. IOW, lots of yellow is gone from the Concho maps in exchange for the green. All that acreage must be CWEI’s now.
While net searching GIS locations for some time, I checked out our small acreage in sec. 8, blk. 55T4, T&P, and I saw 2 well sites and 1 permit location that we (my family and I) were not aware of. How can I find out about the well sites. Will appreciate any help.
James, we just signed with CWEI in December for Section 185 to the NE of you. Our original lease with them expired just a few days ago. We were able to get much better lease language from CWEI in our recent negotiations, as well as $2250 an acre. Our starting point for negotiations was $3500 an acre. If we had been willing to wait longer, I suppose there is a possibility we might have gotten a somewhat larger bonus, but we are held in a trust and our bank trustees were getting a little antsy to settle. There were also tax reasons we didn’t mind settling in 2015. I don’t know when your lease expires, or how much you need the money, but in general you do better if you don’t hurry. BTW, I think our negotiations started back in late May or so. It was the fact they approached so far in advance of our first lease’s expiration that made us figure they really wanted us.
