I was contacted this week about leasing property in the W. White survey off FM705. The initial offer is $400 p/acre bonus w/ 20% royalty. I politely countered with something more acceptable to me (if bonus is lowball, royalty will have to dramatically increase). I am not familiar with the company offering the lease. Another company (Red Hat) inquired about my A. Spear survey properties this week & an offer is forthcoming. Who else is getting contacted & what are reasonable expectations in the current market? In 2008, there was a wave of lowball offers before the big boys came though. Could this be a similar situation?
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Could you be a little more specific about where your interests are located. County and Abstract Nos. help. The gas market, overall, is still pretty depressed.
RHB is correct. San Augustine County, TX.
W. White Abstract 308
A. Spear Abstract 43
I thought I posted in SA County Group, sorry.
Do you recall what Operator has you W. White lease ??
No, the landman was out of Dallas & stated they are the only active company in SA County. I was driving & didn't write down the info. He said they were putting together a pool to drill south of Hwy 103 off FM705. My land is north of HWY 103 & would be in northern end of pool.
What state and/or parish are you in?