Reeves County, TX - Oil & Gas Discussion archives

I saw you were in TN. Judging from the plat- I’m s-west of the ‘Petro’ part, and the same size as that; and I’m S of your Family-trust part. So me, Petrohawk, and Wiggins are all equal parts of the 'bottom 1/2 (or so) of it all. I have read in here that going to see it may be something owners should consider … other than driving 1500 miles… is there anything else I should be thinking about/doing? Do you know of any pipelines coming that way? or any additional info…? R-

It says ‘Charles Wiggins et al’ on the plat

Thanks. I am thinking of seeing if they want a 5 year term.

Right, I know Petro sold out to BHP and they’re working more north for now. I signed w/Petro originally. I reckon they’ll get back to us at some point… probably not soon though …

for Richard Spann, BHP is deciding on whether to take an option on the lease for my mineral rights, and we are due west of Pecos about 10 miles in Block C-18. So we’ll know in a couple of weeks.

Stephen - Where is your property? I am working on leasing Block 2, Sect 31 Abst 1054 up by Mentone. It is a 1/4 interest in parcel. have been offered $2000 ac 25% 3 yr. What have you been offered?

Shell and they are partnering with Anadarko.

Anyone know of any leasing activity in Block 55 T7S, near Section 16? Chesapeake got some well permits adjacent to us some years ago but never developed them, and there are some newish wells some miles to the east of us, but I have no idea if there is any real interest near us or not. Thanks!

I just want to throw out there to everyone that you should not sign a lease for anything less than 1/4 royalty. We have acreage in many counties and never go less than 1/4. We’ve given up some bonus in counties other than reeves and culberson in order to get 1/4. Bonus is nice but remember that you really want a well and you want that mail box money coming to you every month.

Charles, I would have to agree with Mr. Meeker. With even an average well these days, the royalties dwarf the bonus. Certainly age and the certainty of having the bonus in hand are factors that can be more important to some, but if you are looking at it from an economic standpoint, if you are offered a better royalty in exchange for a lower bonus, pursue the royalty. As important as the royalty is the lease form. You can lose a lot of revenue to a bad lease form, as well as remove a lot of the incentive to drill promptly and properly.

Craig, Shell said no to a 5 yr proposal, so we are going with the deal as stated previously here.

Me too, FYI.

I’m new to this forum. We have block 70, Section 3. Does anyone here have land near us? Any leasing action near Toyah/here?

Mary Bird, your information was valuable. The original offer from ConocoPhillips for our undivided 1/50 of 640 acres in Section 46, Block 45, PSL, Reeves County (AB 2496) and undivided 1/50 of 287 acres in Section 4, Block 53, PSL, Reeves County (AB 725) was:

Bonus $1,250/acre, 1/5 royalty, primary term 5 years.

Now we’ve gotten an offer of $1,500/acre bonus, primary term 3 years, extension 2 years contingent an additional payment of $1,000/acre and a royalty of 1/5. I would prefer a 1/4 royalty, but the offer now seems reasonable and we (my sister and I) will probably accept it.

Sure glad to have a place like this to ask questions and get advice from others who may have more information than we do, as we are out of state and otherwise wouldn’t hear anything.

Stephen - Thanks for the information.

Hopefully someone can set me straight. On the new GIS map viewer when i pull up the green pipelines and click on it and get the results, it says “in service” Im assuming its fully operational? Just wondering, I pulled up the land(389-33564) google earth and i was able to see the well a few weeks past the spud date, I didnt see a pipeline. Basically im assuming if there is a green line/pipeline on your property, on the GIS viewer, its really there? Thanks

@Wade Meeker: If I had acreage in many counties, and were younger, I’d tend to agree. However, lease conditions are always a tradeoff and if you’re older, a higher bonus may be more attractive than a slightly higher royalty that you might not live to enjoy. There’s also the possibility that there will be no production on your interest during the primary term and the royalty is thus worth nothing.

I’m cautious on leases, too, and would like a crystal ball to see 10 years into the future. Failing that, all I can do is try to get the best possible terms available at a particular time, and then hope for the best. Read back in the discussion for the terms I probably will accept - not the best that could be achieved, I’m sure, but under the circumstances acceptable at this time.

==<On the new GIS map viewer when i pull up the green pipelines and click on it and get the results, it says “in service” Im assuming its fully operational? >==

George – I’m jealous. I click on the green pipeline and can see the commodity being carried and the operator, but do not get an ‘in service’ note. Any hints? BHP completed drilling your SMITH STATE 4-14 #1H around 5-10-13. ‘Final Completion’ and being placed on production would occur within a couple months after that you would think. TIA – Later – Buzz

Stephen - any other benefits of joining NARO (National Assoc. of Royalty Owners). GPS rig locator sounds good. Do you get access to production numbers? I am trying to find this out since Railroad Commission site is behind. Received a division order effective Jun 1, 2013 but nothing showing up there yet. Or does anyone have a different source other than RRC website for production numbers. Thanks in advance.

Is there any activity headed to or towards Tract 1 Sec 68 Blk 4 H&GN close to east Pecos River north of I-20. Would love any info.