Recently contacted by a representative of Ring Energy, Inc. looking to lease my interest in the above track, specifically the SW quarter. Of the 160 NMA, I own 5 acres. Does anyone have any info on activity in this area? The initial offer is $500/NMA at 1/4 royalty for 3 years with a 2 year option (at the same rate of $500 per NMA.
Section 18, Block A-21, PSL Survey, Gaines County, Texas
I believe Ring Energy will be drilling more than twenty hz San Andres wells this year. Ring Energy's "Maximus" well is permitted to run through A21, Sec 22 to your east*. Ring Energy has also permitted a 7600' vertical well, the "Harris North 22" in Sec 22. I would think that if your minerals are in an undivided 160 acres that would put you in a better negotiating position.
Consider reading this: http://www.ogfj.com/articles/print/volume-13/issue-7/features/the-h...
Go to http://ringenergy.com/conference-roadshow.html and view the April 26 presentation.
* http://webapps2.rrc.state.tx.us/EWA/drillingPermitDetailAction.do?m...
thank you for the info. yes, the 160 acres are undivided.
You are welcome.