Oil company close to finalizing 3,000 leases in Carlsbad
The Associated Press
July 09, 2018 08:43 AM
CARLSBAD, N.M. (AP) - An Artesia-based oil company is close to finalizing numerous leases with mineral rights owners in Carlsbad as it moves ahead with plans to drill under the southeastern New Mexico city.
Santo Petroleum got approval from city councilors in 2017 to go door to door and offer residents five-year leases.
The Carlsbad Current-Argus reports the company has obtained about 3,000 leases in the last year, covering the majority of the planned leasing area.
Santo President Hanson Yates says owners were offered a signing bonus up front and a percentage of the subsequent revenue, should the wells prove productive.
Yates says Santo hasn't published a timeline for development due to the complexity of readying such a large number of leases and tracts to drill.
The two biggest leases were with the City of Carlsbad and Carlsbad Municipal Schools.
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Information from: Carlsbad Current-Argus, http://www.currentargus.com/
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The Associated Press
Created: July 09, 2018 08:43 AM
Copyright 2018 The Associated Press. All rights reserved.