We just bought 50 acres (south of 103 on FM 705) and own 100% of the mineral rights on this property. Our property lies in A-21 N Hunt survey. A timber guy contacted us offering a price for our timber. I refused and the conversation turned to mineral rights. I informed him that I own the mineral rights to the property and he was shocked and stated that I didn't have any idea what I was sitting on. I was a little surprised because looking back through the property leasing data, the mineral rights had only been leased a few times since the 1950's. I told him that this property wasn't even part of the big land rush back in 2008. I'm one of those "I'll believe it when I see it" kinda people. He stated that activity in that area was about to pick back up and his company (which timber thousands of acreage) is dealing with O&G companies looking for additional mineral leases in that particular area. Personally, I think he's nuts because I have many friends in the O&G industry (in Houston) and they haven't heard any such chatter. Also, my understanding is that the Haynesville Shale doesn't extend south of Hwy 103. So, is my gut reaction right, or does this guy know something that I don't?

Views: 2575

Replies to This Discussion

The timber guy is partially right.  And economic Haynesville Shale does indeed exist south of FM705.  The question is just where?  I don't know where the A-21, N Hunt Survey is located but I'm sure some of the group members know.

The N Hunt survey is probably about 2-3 miles south of Hwy 103 on FM 705. It is bordered to the east by Ayish Bayou and roughly to the west by Hwy 147. It's northern border is CR 314 and national forest and southern border is roughly CR 303 and the Turkey Hill Wilderness.

I think that's close enough to 103 to be prospective.  The timber guy may think "things are picking up", and they maybe for the company he represents, but the more accurate description IMO is that interest never went away, it's just been at a low but steady level for the last few years.

Some of the timber guys have been trying to pick up mineral leases for several years now. They figure to flip them to an operator if interest does pick up.

The problem, as I see it, is that nothing has been drilled south of 103 that amounted to anything. Just NE of the east end of A-21 is the Zap Minerals well EOG drilled several years ago. Frac'd one or two stages (may have had mechanical issues... maybe not) and the well is shut-in since February.

The west end of the survey may have more potential than the east end but no way to know how any of it will produce until someone drills a hole or two. XTO drilled in the west end of Z. Redmond 2.5 miles to the north. That's the closest producer today.

Attachments:

Aggie 95 you will never be leased Black Stone Minerals own almost all the minerals in the area that surrounds you.

Then I guess that's one less thing I have to worry about. So, they own all the minerals underneath the Bannister Wildlife Management Area and the Turkey Hill Wilderness? Because that's what I'm surrounded by. They may own everything around me, but they don't own the minerals underneath my 50 acres.

Go to their website and you can see what they own,

http://www.blackstoneminerals.com/Our-Assets/Property-Map/

I looked at that map a few days ago. I guess, my 50 acres doesn't matter in the big picture. However, I don't understand why my minerals would never be leased just because they own all of the minerals underneath some (not all) of the land that surrounds me. I don't understand the reasoning or how that process works. 

You would get an offer if they decided to form a unit and needed your acreage to go with whatever Black Stone has... if you do own the minerals. Only a title review would tell you whether you do own the minerals or not. The minerals could have been reserved/sold, in whole or in part, by previous owners.

People have been saying this since the land rush ended.

People have been saying what since the land rush ended?

Aggie, if XTO wishes to form a drilling unit that includes all or a portion of your 50 acres it is likely that they will offer you a lease.  However with only fifty acres it is entirely possible that they will form a unit and drill wells without a lease covering your minerals. So get professional assistance if you get an offer. 

I suspect that Wish You Knew is referring to the time when there were multiple companies leasing and drilling Haynesville Shale, there were quite a few 2009 - 2011.  Eventually the price of natural gas put an end to all of those companies' Haynesville programs and XTO acquired the bulk of what turned out to be economic acreage.  Today XTO is about the only Haynesville player in southern E TX.  The bulk of the minerals in that portion of the fairway is owned by a handful of timber companies and Blackstone.  I'm pretty sure that XTO's deal with Blackstone includes a drilling commitment.  That means that XTO has an obligation to drill BS minerals.  If XTO needs some minerals from you or a timber company to fill out a drilling unit comprised mostly of BS minerals they will probably offer to lease that acreage.

Hopefully that helps you understand the basics of "how this works".  You state that you "own 100% of the mineral rights on this property", are you sure?  Texas law allows the surface estate and the mineral estate to be severed in perpetuity.  It is quite common for minerals to be reserved by sellers in your chain of title.  If there is a reservation of minerals back down the chain of title on this 50 acres it is binding.  If this is the case it doesn't matter what your deed states.  You own the surface but to know for sure how much of the mineral right you acquired with the surface you would need a mineral  title search.

RSS

Groups

Not a member? Get our email.



© 2018   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service