In relationship to Donny’s reply to me, we just got an offer to buy our mineral rights for up to $5,500 per acre from Alimito (I think sp?). As we only have 33 acres, and BHP does not seem to be actively pursuing for sure in the next six months when our lease is up, with Donnie’s comments it seems that the amount that would be generated if and when a well was drilled may not come close to the amount generated from a sell?? I have witnessed that most of you say hang on to it. We are not so sure at this point.
EOG Resources CC Transcript – 2-25-14
Presentation
Billy Helms - Executive Vice President, Exploration and Production
In the Delaware Basin Wolfcamp, we are gathering microseismic from several wells to further define optimal development for this multi-pay shale play. During 2014 we plan to test a number of spacing patterns across various zones with the goal of maximizing recovery and determining the impact of any communication between wells. We also plan a more active year in this play with 14 net wells.
Question-and-Answer Session
**Charles Meade - Johnson Rice**
Shifting over to the Permian, your slides are very helpful. It's obvious your lookout for the Leonard play is a more attractive than the Wolfcamp play, because you are pretty classy there but, but I am wondering if your 2014 plans for the Wolfcamp, you might be able to go North and East from Reeves to perhaps in Ward, I think where you have seen higher oil cuts in that Wolfcamp play and if that's an option for you, is it part of your 2014 plans?
**Bill Thomas - Chairman of the Board, Chief Executive Officer**
Yes. For the Delaware Wolfcamp our acreage is located kind of in central Reeves and we do have some acreage up to the North and to the East in the northern part of Loving County and then in Lea County that we believe are prospective for the Delaware Wolfcamp.
You’re correct, it does get a bit oilier as you move that way, so into 2014, we are really probably just focused on the Central Reeves County area. Then we will be testing additional Wolfcamp potential maybe later in the year in 2014 and in the 2015 as we go forward, but we are trying to work the play technically and increase the oil percentages as we go forward. Later -- Buzzdon’t remember where i saw it but someone said they had acreage in PSL c-17? if you’re in that block and you are available or about to be in the next few months you should call debbie harris at cimarex. 432-571-7800. 3k per acre. ready set go!
Had a call from Clayton Williams last week regarding Blk 51/Sec 8, T7S, T&P RR survey. Anybody else heard anything in that area?
Donnie, I’m sure you’ll hear something soon.
Linton, as you know, my wife has 26.67 mineral acres in Sec 8, Blk 5, Tws 7, Abstract 5873, so I will definitely be interested in being kept abreast of any lease with Clayton Williams. We haven’t had any contact with Clayton Williams. Got the tax bill today from Reeves County and a lease on these minerals sure would help out. Overall, thee is a lot of activity in the block.
If anyone know what leases are going for in this and adjacent blocks, it wure would help us make sure we get a reasonable lease/royalty rate
Donny
Have you countered? Why not ask for $2000 for two years?
Kathryn - We just agreed to $2000 per nma for a 2 year extension with Rosetta. Sect. 4, Blk 76, Abst. 3661 (just SW of Pecos)
Thanks, Craig. How many acres?
Craig, isn’t that Blk 4, Sec 76?
Sorry. yes it isBlk 4 sect 76. It is 44 nma and the royalty is 25%.
Great, thanks. I’ll have a go at $2000 with Rosetta. I have 25 nma so they may make that a distinction…
… “Rosetta has different price points for different areas…I’ll check with my supervisor and get back to you”. Maybe I should have asked for $2500 :). I’ll keep you posted. Thanks again.
in all things
Well, $3,000 for three years is now happening at various parts of Reeves. Haven’t heard of anything recent in north Block 13. I am in 258 but it is held by production.
Craig, I’m also interested in what the royalty percentage is with Rosetta. Thanks! Linton
Does anyone know the going rate for Block 56 PSL Sections 17 and 18? Is there activity planned for this area? Any recommendations for working to be included/excluded in a lease?
FYI I have a 2 year extension offer for Reeves Section 266 & 265, Block 13 for $1500 per NMA from New South Minerals on behalf of Rosetta Resources.
Hi Stephen. What is the “going rate?” They are honoring all other provisions to the original lease (written by Buddy Cotten, so very thorough).
Dont do anything unless it is a quarter royalty.