From your earlier post I thought your family was committed on a lease extension. If not, I’d try negotiating further on that bonus. Location and the size interest you have can make a difference but Silverback (or E & G Exploration who is dong a lot of the leasing for them) has done deals recently a couple of sections south of you for a lot more than $666/acre. If you still have time you should check out the wording they are proposing on the extension. Don’t accept something worse and see if you can improve on anything in your previous lease. I’m assuming you have 25% royalty but this time you might try for things like a flat 3 year term with no option, cost-free royalty and no warranty of title. If Silverback won’t work with you, Arris Exploration might be worth talking to. They’ve recently completed several wells within a few sections of your area and seem motivated. Companies are negotiating based on the long term potential of this area and you should too.
amy john my sister and I have 500 acres each in section 26 block c7 psl and have received several offers from various companies to buy our land. Would you have any insight as to why? Much thanks for your consideration.
I learned a lot from my husband’s inherited WI a number of years ago. Mobil operated him and his family to death. When the lease was sold to an individual you wouldn’t believe how expenses dropped. Also there was none of Mobil’s infrastructure - this manager, that manager, supervisors etc.
My point is I learned to never participate unless I knew and trusted the operator. Obviously if CWEI is treating me this way now, what kind of an operator would they be if I was a WI owner?
I would like to be reminded how to find my production company and the production on the TRC Website. I know there are some of you who know how to do that so I need your help.
You’ve got alot of options here. You can lease to CWEI, have them carry you until the well pays out and back-in for your full interest, or you can lease to a non-op party who would participate with your lease in the wells.
Clint, how do I find the Well API number and other info needed to find the production data. The company is Araballa Production. The well is Graham 1H in Reeves County.
Ann, that is pretty frustrating to hear. By carrying your interest, CWEI is able to recoup their drilling cost faster, so it doesn’t surprise me that they’re trying to claim you made an unrealistic lease request. I’d be inclined to lease the property to someone other than CWEI in response to their behavior. You can probably get $3,500+/ac
I forgot to add, you may want to reach out to one of the forum sponsors to see if they know of someone other than CWEI that may want to lease your acreage. Keep us posted as I’d love to hear if this ends up getting leased by someone other than CWEI.
Just a note: I am looking for a section map of the Permian basin or Reeves County, which ever is smaller. I note that there are maps for the Bakken and Eagle Ford areas advertised on this site, but none for Permian.
Thanks Dusty for the comment. I had to go out of town so did not have time to look over what Silverback has sent my mom. Hopefully she has not signed yet so I can take a look!
That is right in the heart of Apache’s block. They just permitted a well in the sections immediately to the west of yours. That is a bit of a speculative play for them, and with little competition $800/ac bonus is the last I heard they were willing to pay. If you own 1/8 of 160, that is 20 net acres, and you would be looking at a lease bonus of at least $16,000 if they are still paying $800/ac. You may want to consider reaching out to one of the forum sponsors to see if they have more up to date information about what pricing looks like out there:
