I recently received an initial offer by telephone of $300/acre and 3/16 royalty for a 5-year period for approximately 100 acres I own near US 69 and Dead Man Road (CR 317) a few miles west of Zavalla. And I know of one offer of $2,700/acre for mineral rights in the area. I'd appreciate any information others may have on lease offers/royalty offers in that general area of the county, which has not seen much activity until recently, I believe.
Fishing expedition. No where near fair market value. But it is time for Angelina County mineral owners to start looking for information on leasing and development. When all is said and done I think some of the best Haynesville Shale rock will be found in Angelina. Development progress has been slow but that is because of depressed natural gas prices and high well costs. The Haynesville is quite deep in Angelina.
Milton, you will do much better posting in the Angelina Group than here on the Main Page (Shale Related Topics) and here is why. When you post a discussion in a group every member of that group gets an email noticing the new discussion. Those are the members that you need to respond. When you post on the Main Page you are hoping the right members see it before it rotates down and off the page. So join the Angelina County group, scroll down to the bottom of the discussions you see on that page and click on Add a Discussion. Then your discussion will appear on the Angelina County page instead of on the Main Page.
Use this link to go to the Angelina County Group page.
Many thanks for the advice and the suggestion regarding posting, which I have followed. I knew the offer was way too low. I've seen advice posted in 2017 for north Angelina area suggesting $250-350/acre for 20 or 22% for no more than three years. Maybe a two-year option to extend at the same bonus or higher. I heard just yesterday of an offer near Huntington for $500/acre and a 1/5 royalty. But I'm not in a hurry and can stand to wait to see what happens. - Milton
Thank you for the detailed information. Manning is not far to the south of my property, so I can follow that closely. And yes, the royalty is the more important thing. Good advice there, too. Friend request has been sent. - Milton
I have a friend leasing for BP, Milton you will be too far south for BP to be interested in.
Get an O&G Attorney!
keep repeating this advice..it very important..
ask for much more and get a term limit for them to drill ..good luck
There's zero competition in this area. Maintain low expectations when you ask for commercial terms (royalty / bonus) above market offer. Focus on non commercial terms that will improve the clarity and working relationship understandings within your lease contract. Agree with using an O&G attorney.