Generally, you apply each royalty rate to each income stream. It can get complex quickly, and not sure I can be more specific without seeing documents, knowing the size of your unit, how much acreage in each unit, etc.
Wade, Buzz and others I also meant to include that per the railroad commissionâs GIS there is no obvious pipeline this well what does this mean if any thing.
check the production of the lease on the RRC site, there is even a further breakout on how the monthly production is transported, truck, pipeline, rail, etc.
There is a steep decline rate on many fracked shale oil wells but I leave that explanation to others who actually know the business.
good luck
Small acerage in Block 2, received a lease offer from Acadian Land Services. Anyone familar with this company. Lease is for 3 years with 2 year optionâis this good or not?
CraigâHowdy neigbor! Thanks for the info, donât know what we will do just yet. I understand an offer from Cimarex may also be coming. Weâll see.
Mel - How much was the offer? How large is parcel? What is section and abstract #. We are in sect, 2, block 31, abstract 1054.
Mel - Yes, thanks for the information. I tried to contact Cimarex a couple of months ago, but didnât get a response. If you get an offer, I would be interested in the landman contact info. Apache which has a well a couple sections to the north was not interested. Good luck.
I donât like the bonus option. Prices tend to go up with better understanding and results. Also, by giving the option it is a chance for them to delay drilling on you and that ainât good!
Mel - Sorry, meant to write that we are in Block 2, sect 31, Abstract #1054.
CraigâBlock 2 sec 31, abstract 49 4 acresâ$1500/acre
Mel - Interesting. You are right next to us. We have been talking with Acadian also. Last offer from them was $1750 per ac 3 yr, 2 yr option. We submitted a counter with a higher bonus and 26 riders to the lease a week ago, but havenât heard back. Our interest is 1/4 of 213 acres. Acadian is working on behalf of Shell and they are partnering with Anadarko in the area.
Stephen - I agree. I donât think the extension option is a good idea for the mineral owner. I am finding that some companies are not as aggressive this time around even though there is now pretty good production results. One company told me they have plenty of acreage under lease right now.
Hi berrytc,
â100% interest in the S 3/4 of the S 3/4 of East 3/4 and NE/4 NE/4 of Section 40, Block 59â.
On the GIS map I see a shape in Section 40 like a reversed Utah with text W. L. Coalson, A-1562. Is that your acreage? If so, I am your neighbor to the north. Are you under lease? If so, what terms?
Just read that Shell is exiting its Eagleford play as well as Kansas Mississippian play. For those of us looking to possibly lease to Shell imminently this is troubling. If Shell doesnât like the economics of the Eagleford, are they likely to shut Reeves County pos down as well?
Richard:I think we are neighbors. We have minerals in Block 4, Section 32 that we gave a lease on about 2 years ago. It comes up for extension next December. There was a lot of activity nearby, but Iâm not sure when they will get to us. BHP (Petrohawk) seems to be the most active, but Devon also holds some leases in the area. I think they made need to coordinate to put contiguous acreage together but that is just my speculation.
What kind of terms did you get on your lease?
Hi Lori,
The non-producing acreage will be relinquished only if you have a Pugh Clause (or equivalent) in your lease. Sometimes it appears in the offered lease, sometimes you have to ask. Itâs very common, so if you ask youâll likely get it. The operator can often retain acreage if they continue to drill (Continuous Operations Clause) even if there is no production. Also, in some contracts the relinquishment actually happens a couple of years after the end of the term of the lease or end of Continuous Operations.
FYI, just had a conversation with a Midland businessman (oil) who thought Shell was selling its Eagleford play etc., to focus on Permian and Delaware basinsâŚso possibly a very favorable implication for Reeves.
Makes sense since Sheâll bought the Chesapeake acreage.
Does anyone have property or now what is going on for the SW/4 NE/4 and SE/4 NW/4 of Section 19, Block 7?
My lease is up Dec 2013 but I havenât heard anything.
I was getting $250 bonus; royalty 3/16 Term three years with an option to extend for 2 years.
TEXAS GLO SEALED BID SALE, OCTOBER 1, 2013
Accepted Bid Results for REEVES:
BHP Billiton Petroleum Properties LP (single bidder, 6 tracts)
T&P BLK 57 TWP 2-S SEC 20 â 9 ac, 2.25 ac & 3.33 ac: $3,000/ac each
(4 Miles W of Orla)
T&P BLK 57 TWP 1-S SEC 48 â 10 ac, 10 ac & 5 ac: $3,000/ac each
(7.2 miles NW of Orla)
Williams B. Robbins (single bidder, 3 tracts)
PSL BLK 72 SEC 33 â 80 ac, 60 ac & 80 ac: $2,752.28/ac each
(4 miles E of Toyah)
Four tracts near Toyah did not receive the minimum bid of $1,000 per acre:
PSL BLK 71 SEC 29 â 140 ac (1 mile S of Toyah)
PSL BLK 72 SEC 21 â 80 ac (3 miles NE of Toyah)
PSL BLK 72 SEC 28 â 155.8 ac (2 miles E of Toyah)
PSL BLK 72 SEC 37 â 40 ac (3 miles SSE of Toyah)
Later â Buzz