Hello again, have just received a call from EOG wanting to lease 30 acres that I own about 8 miles east of Nacogdoches for $275 an acre and 3/16 royalty. My neighbors ,who border my acreage, is holding out for $450 an acre. Does anyone know what price we should be asking for? Another neighbor, (AL Johnston) was drilled by EOG a few months ago and hit a huge find with vertical drill. EOG hinted that if I don't lease with them, that they will horizontal drill from Johnson's well and attach any gas under my ground anyway. Is this possible or legal? Thanks much for any info and guidance.
Thanks Mike. Great information...can't wait to read the whole doc. We are 5 miles east of Nacogdoches (1/5th of 336 acres) and got a call from EOG landman yesterday regarding our ownership interest. No offers or suggestion of offers (and I didn't ask) she just needed to verify information. I guess it's coming our way. :)
ELAINE-LOOKS LIKE YOU HAD LEASED TO CHESAPEAKE BEFORE--EOG APPEARS TO BE LEASING MUCH OF WHAT CHESAPEAKE HAD--DO NOT BE BULLIED AND REVIEW OTHER POSTINGS FOR CURRENT TERMS AND depth restrictions. $275/acre is too low
You are so right about Bill! Yes, he's still practicing. I think I might call EOG and ask them to mail me the contract and take it to Bill to read. But, does anyone think I should call the other gas companies in the area to see if they are interested in this track of land? I was supposed to call EOG today with an answer of the $275 and 3/16 royalty.
RBH, If her land is in A-662, Petrohawk has a James Lime well that bottoms in the NW corner of A-662. Mr. Johnstons (EOG) Travis Peak well is to the west in J. Walling, A-588 and EOG has another Travis Peak vertical to the south in J. Walling, A-588.
Elaine, If the offer of 275.00 & 3/16 is an initial offer ask for the lease and take all the time you need to decide what to do. Take it to a good lawyer and let him/her advise you. What you don't want to do is hurry. You should be able to get a better bonus and you need to be stubborn about a higher royalty. At least 20% but ask for 25% and you can work down from there if you have to.
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