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Permalink Reply by Oilman28 on September 23, 2015 at 3:16

Danny, 

Per the records in the Clerk of Court, this was a lease swap between the two companies. Companies will do this to enhance their contiguous positions of leasehold that might benefit one or the other when it comes time to unitize and drill. 

As far as who is the better company to own your lease, Paloma has recently put their lease position on the market, so it doesn't appear that they have any near term plans to drill the acreage anyhow. TRex will likely not drill either, but if the play were actually somewhat active, your lease would ultimately end up in the hands of a competent operator that would drill and pay you your royalties. The biggest problem in the TMS, is that there is zero activity. I would be willing to bet that your lease will end up expiring in 18 months, and you can thank your lucky stars for the $1000/ac. that you received. That kind of lease bonus is as high as I've heard down there other than a few special instances. Bottom line is I don't think it matters much either way who owns your lease at this point, until oil prices recover enough to get operators moving again in the play. 

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Permalink Reply by Danny on September 23, 2015 at 3:46

Thanks for the info.  Yes we were very lucky to get that amount, it was only offered once and we had to give an answer right away to them.  I know our neighbor got 750.00 then another neighbor who waited only got 650.00.  Not sure what their plan was at the time but remember this was when oil was up there and the activity was there in the play.

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