Replies to This Discussion

Permalink Reply by J. A. on October 11, 2009 at 3:21

ok skippo you win

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Permalink Reply by Skip Peel - Mineral Consultant on October 11, 2009 at 3:27

J.A. It's not a contest. LOL! It's an opportunity to help members get a grasp on how to interpret what they read on the site. And the previous concept of "fields" is not applicable to The Shale as it is an unconventional resource play.

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Permalink Reply by Les on October 11, 2009 at 10:48

While there may not be a "going rate" for all the leasing areas within the Shale, I asked for advice about a specific section which apparently has been mostly leased out and which if I lived in the area I could probably find out what similar landowners in that section were getting without too much difficulty. It certainly doesn't sound like I got a fair offer @$2500/acre from the landman that contacted me when it sounds like others have received bonuses from 5K to 19K in the same section.

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Permalink Reply by Skip Peel - Mineral Consultant on October 11, 2009 at 11:03

Les. $2500/acre sounds like an "opening" offer to me. I suspect that the previous responses in the $5K range are fairly accurate for a one acre tract in your location. The leasing company isn't likely to go above $2500 until the operator is ready to begin developing your section. I would wait until a well is being drilled before getting serious about negotiating a lease.

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Permalink Reply by J. A. on October 12, 2009 at 1:26

Skippo, I knew you would get there if you had time. I'm so proud! My little boy is all grown up!

For Les, Our land is very near and it went for 20k per acre. So I think 1/4 (5K) is fair. FYI: I am not in the Oil and Gas Business. My opinions are only that.
Have a nice day!

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Permalink Reply by Skip Peel - Mineral Consultant on October 12, 2009 at 2:26

J.A. The Greenwood Waskom Field is one of several large field areas that have a wide range in productivity at this time in the Play. It's not just you and me and Les in this conversation, it's all the members who are reading it. If Les had stated in his discussion topic introduction that he had one acre, I would have let it go at your response. The fact is that depending on location within the field and the size and nature of the tract in question, $5K could be far short of the accurate current value. The point is that pat answers lacking the required specifics can lead to incorrect conclusions. And poor decisions. I hope you also have a nice day.

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Permalink Reply by J. A. on October 12, 2009 at 2:31

Thanks for your help.

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Permalink Reply by Skip Peel - Mineral Consultant on October 12, 2009 at 2:39

You are welcome.

Permalink Reply by Spring Branch,mineral owner on October 12, 2009 at 3:54

You should have no problem getting $5,000 per acre in T 17. I wouldn't lease for less.

Permalink Reply by Les on October 12, 2009 at 10:18

J.A.- To get 20K/acre you must have signed at the height of the bonus frenzy in 2008. Well done. I realize I'm a little late to the party and I have only one measly acre to lease so I won't be able to command the same rate as you. But if I can get 5K-6K for the bonus I guess I'll be grateful. Thanks to everyone for their input.

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Permalink Reply by J. A. on October 12, 2009 at 11:18

Your welcome. I hope you connect one of the companies discussed earlier.
As you learned from this discussion the " Going Rate" is around 5K
and remember there are some eager landmen that watch this site looking to get you a "deal"
Then they flip it and make the difference between that and the "going rate"
Have a nice evening.

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Permalink Reply by d. blizard on October 12, 2009 at 11:41

let them force pool if they want deal

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