We are being offered $100 per acre for a 5 year lease with a 2 year option plus a 1/7 royalty. This is Block DD Section 36 the NW/4. Is this a reasonable deal or should we ask for a better deal.
Thomas, are you talking about the Red Headed Stranger well that Concho just drilled as being a dry hole?
Mark, the rumor I heard through an oil and gas attorney who practices in West Texas is that the Red Headed Stranger well is a dry hole. The site is now abandoned and waiting to be plugged. The updated information on the Texas RR site filed on 9/17 simply indicates that they are filing some kind of amended documents, which could be that the well is a dry hole and is being plugged. e dubose thinks it is something other than what I described, but what I have heard is that it is definitely a dry hole and going to be plugged. Sorry…
Hello Robert, What quadrant of the county is this Red Headed Stranger well located?
Does anyone know where Concho is going to drill the second well this year?
NE quadrant of the county. Thank you. Shelby
Call me dumb, but whats Red Headed Stranger? Is it just what they call a well they are trying to drill ?
I know it’s the name of a song.
Thanks so much for clarifying! Now, it all makes sense! Thank you for checking on everything…Only time will tell. Amy
The Red Headed Stranger is a song written by Sonny Curtis, sung by Willie Nelson. The oil well is on Sonny Curtis’ cousin’s farm in Meadow, Texas. As of yesterday, 9 or more frack tanks and crew with other new equipment, more 500 b battery tanks being added for a dry hole I think not. Never trusted local attorney to know squat. Maybe the plugging is on the next well to the east and it has not been plugged yet. I just spent over a week in Terry, Hockley, Lynn, Lubbock, and New Mexico oil patches. WTOFshore flex rigs running. Have pictures of most proctor in Terry drilled. They are preparing for frack crew. I hear that 500 to 1000 bpd on Concho stuff. Who knows what is true? I only know one half of what I see is true. The second well of Concho is 2 miles off of Brownfield level and Highway 2 miles east on FM 211 on ridge to north of highway in CRP land. Amy, the Red Headed Stranger is drilled and has been rumored to be producing from 1200 to 600 bpd oil. I like this story but be of open mind to just what is true and correct. Only when reports on RRC comes out will we know.
We own some un-leased land 3 miles southeast of the Red Headed Stranger location. Certainly hoping for the best right now. Have noticed a company called Shaw Interests taking leases in our area, anyone know anything about them or who they work for?
Checked the RRC on the Red Headed Stranger API 445-32330. Concho filed on 9/17 to amend the permit to a vertical rather than horizontal well. On 9/25 the RRC put the application on hold until Concho fixes the tracts and acreage on their P-12. I’m guessing the P-12 needs to be changed because the spacing is different for vertical wells. Perhaps this is some technical preliminary to plugging the well, but sounds more like some sort of development is continuing. Can anyone with industry experience interpret this for us?
Hi Myranda. Shaw Interest is out of Midland, Texas. They leased a small piece of acreage from me back in 2008, on a three-year lease. They never drilled on the land and they never flipped the lease to another company. At the end of the three-year term, they did not renew the lease agreement for an additional term.
Thanks Robert, Doug and Amy. My major concern is that the name Shaw Interests does not sound like an operator. It sounds like a land management company that is either working for someone else or trying to flip leases.
Shaw doesn’t “own the company that is drilling” and “…all that matters is you get paid and it’s done legally” is mostly incorrect. Shaw is a broker hired by an E&P company to obtain leases in the area. Shaw is not drilling anything. This arrangement is not abnormal as many E&P’s don’t have the manpower/time to negotiate leases so they hire a third party to do it.
We leased our minerals with Shaw Interests back in early 2011. Had a good experience and hope they eventually drill on the property before the term is up.
Myranda… It was a Landman who called us…I think they own the company that is drilling and they were out of Midland…all that matters is you get paid and it’s done legally. I’d hurry tho…if wells come up dry, hey… at least we got paid and it was a sweet bonus. All we can do is hope for lots of oil. 
Ms. Smith, I would rather deal with the horse’s mouth. I have frequently heard from hired landman companies that what they offer is all it’s worth and when I negotiate with the operator they are open to more bonus, greater royalty and changes to the lease terms if that means it’s a done deal. The hired landman was told how much he could offer to lease the acres, not what the company would be willing to pay. The landman likely does not have authorization to change the terms of the lease. Why would you want to be negotiating with someone who doesn’t have the authority to give you what you want, when their employer might readily agree?
Mr. Dubose, that was a very good movie!
I understand that. I think we were paid the highest that I have heard of in this forum…and we were happy with Shaw Interest, whether a small company , or “just” a landman we dealt with…we don’t care, we felt like we were given a great leasing opportunity…good luck with the horses mouth, hope you get what you want!