I recently received a lease offer on some Shelby County land I hold the mineral rights to and was disappointed in the initial offer of $300/Acre and a 1/6 share. Has anyone heard of other offers that are better? It is in the Carson-Neva Survey area.
Shelby County royalty rates are all over the place. Most companies initial offers are between $200 - $500 an acre, which in my opinion grossly undervalues the minerals.
As for royalties, 1/4 leases are commonplace in Shelby County.
The reality is that many big players are active, not just interested, in Shelby County. Other than Petrohawk, I don't think any of the operators have announced that they are drilling Haynesville wells in Shelby County but they are. Take Devon's Case #3, put on-line in October 2008. This well produced over 600,000 mcf of gas in its first full month of production... That's Haynesville type production, not Cotton Valley. Even with natural gas prices low, Haynesville wells are monsters.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More