I have 3 separate 320 acre parcels in the H&GN Survey, Section 13 that were initially leased to Chesapeake in 2005 (I have 3/8 of the mineral rights). CHK farmed out one of the parcels to Eagle Oil and Gas and they drilled one well in 2010. Eagle sold to Comstock and they drilled the #2 in early 2012. CHK farmed out one of the parcels to Oxy and one to Clayton Williams. I contacted Oxy and was told they thought their rights expired in Aug 2013 due to a Continuation Clause. If this is the case then Williams would also would be affected. Iâve read the lease and I really donât see where I can, at this point, go out and re-lease out the 2 remaining parcels that have had no activity. I donât understand how one lease, with separate parcels, can be split 3 ways and held by production by 2 companies from one well drilled by a 3rd company. What can I do?
Louise, I joined NARO (National Assoc. of Royalty Owners). Annual subs are $150 and for that you gain access on the website to their GPS rig locator, showing you the exact location of every rig in the USA.
With all the wells Petrohawk and BHP have put in the area in the last year, pipeline capacity is the biggest issue. The new RRC map does show a pipeline to our well now so hopefully that will help production in the future. Donât know who you are leased with but Petrohawk is shut down drilling since their acquisition by BHP and BHP has moved their drilling up north to the Orla area where most of the exploration is going on now.
Mike you can petition the RRC for clarification and/or hire an attorney!~! Either of those choices will require a great deal of patience!~! Good Luck
@Mary Bird Bowman, I have acres in Blk55, Twn 4, Section 8. How close am I to you?
@Stephen Long, how close is Cimarex drilling to my land. How do I find this info?
Thanks to you both.
Louise
Hi everyoneâŚthis is my first time to post here, so please excuse the ignorance.
After reading an article link posted on here some time ago, Iâm trying to do some research for my grandfather. If Iâm reading things correctly, âAPI 38931048â produced 282,651 mcf this past twelve months, yet my grandfather received $90 in royalties for the year.
After the 25% royalty gets split another four ways, I assume this wouldnât be a ton of money, but I hope that it is supposed to be more than $90/12 mos. Am I not reading things properly?
Thank you Stephen, I was out there looking for the land in June, unless you have a realtor with you, it is hard to know where your land is. I saw a lot of activity and was impressed. Would you know where I could find a large map of Reeves county as I would enjoy seeing all the drilling going on. Thanks, Louise
Thanks Stephen,
I appreciate all the information and advice you have given. It has been very helpful to me. It was really fun seeing the land and all the activity. It is nice to know of all the activity all around me. Gives me hope. Once again thank you.
Louise
A piece Morgan Stanley did on Cimerexâs wolfcamp position in Reeves CO, TX: MorganStanley%20-%20Cimerex.pdf
Understood. Iâm about to lease three tracts NW of Pecos and there will be no two year option.
Same deal actually. In 54/4, Sects. 16 and 32 and at the north end of 54/5, Sect.2.
Why? How would you adjust it? Less likely to get drilled???
We just have a 1/4 interest in a 213 ac parcel. Probably other leases involved will have 3 year terms, so if they drill it will be held by production in 3 years. Wouldnât do 5 unless they would extend at similar rate ie 2400 for 3 years - 4000 for 5. Just a thought?
Fair enough. I wonder if they will go for it? Who are you dealing with?
RE Atwood - I see where you are getting your numbers from but something doesnât make sense. Using the 282,651mcf at $3/mcf and 25% royalty split four ways, the gross (before expenses) should have been in the $35,000 range. Sounds like a call to the operator (TEXACO E & P INC. at (281) 561-3713) would clear up the issue.
RE- Paul Eggers: Are you the âEggersâ in the Permit that was issued called: âEggers 4-31 1Hâ ? back around Feb/2012? If so, I wonder if that permit/section is producing and if their is revenue currently? (Since my 101 acres seems to be part of thatâŚ) Thanks, Rich
One in the same. However, the producing acres are only the top one-half (300 acres) of the section (600 acres). Production and royalties are occurring but has not been consistent because of the lack of pipelines. Are you to the east or west of the Petrohawk property where the SWD well is? Have you been on site? My dad was on the property 20 years ago but no one been down since then. We are in Tennessee.
Wiggins, as in Bob?
Fred, what kind of proposal is being discussed please? Glad to hear they are still in the game around Pecos
Well, it is an existing lease on the 3rd year, and coming up on the first option yr. Our lease is cheap so I think theyâll take it⌠Most leases are now getting 1100 to 1300 but our âoldâ lease is only for $300/acre but also is 1/20 of the production if they ever decide to drill.