Replies to This Discussion

Permalink Reply by Nacman on June 8, 2010 at 4:57

Are you aware of any list of what current lease bonus and royalty offers are in Nac Cty? Seems like such a list would help mineral owners whose leases have or are expiring.

Permalink Reply by adubu on June 27, 2010 at 14:21

all depends on survey location and what going on in that area at the time for example the Chireno area just south of Martinsville is very hot with all the wells EOG is drilling H shale wells with IP of 15-18 mmcfd. acreage there is in $1-$4000/ acre with 25% r and in other area of the county you could not get $100 acre. If you have minerals you can look on the rrc web site and check activity in your area this will give you ideal. Post your survey abs # and ask around if any one is in that area that has leased and what activity they know about.

Permalink Reply by Headly on June 29, 2010 at 7:19

our lease in Mora 827 is up in October. we anticipate hearing from EOG soon.

Permalink Reply by adubu on June 29, 2010 at 7:45

I bet you will if not put in unit and drilled before oct--what part of the survey are located? EOG has recently permitted several H shale wells in the survey in the NW part. Mora 827 large survey in the Melrose, woden,platt, and etoile north areas

Permalink Reply by Headly on June 29, 2010 at 9:36

we are near chiereno just south of the highway - don't have the exact description handy. we are aware of three EOG rigs nearby - one within a mile. do you know the area? Thanks.

Permalink Reply by adubu on June 29, 2010 at 10:08

yep-- family in martinsville area -- you south of state hwy 21 ?

Permalink Reply by Headly on June 29, 2010 at 10:11

yes, south of hwy 21. is this an attractive area?

Permalink Reply by adubu on June 29, 2010 at 10:21

yep--they keep going futher south-bet they find a way to get you in unit before lease expires or if not will offer "top lease" before expiration so no one else will lease you. If that happen remember it will be same as a "NEW" lease so you can ask for better terms like 25%r at least, royalty free gas, etc don't let them rush you if they can not drill you before expiration get what you want but don't get greedy on bonus your best money is in ground and will pay for years, you want a well and muliple wells. mail box income each month is wonderful--hope you have lots of mineral acres-- Good luck

Permalink Reply by Headly on June 29, 2010 at 10:29

thanks for the solid advice. they did bring up a top lease a couple of weeks ago. is the royalty free gas term a viable option? love the mail box income idea - could really improve my retirement plans. thanks again and best of luck to you too.

Permalink Reply by adubu on June 29, 2010 at 10:55

how many net mineral acres do you have? Read on this site about lease clauses that are ideal--- look thru search on this site. Ask for everything you can don't let them down play or push you --everything optional on the table--will you get it? Don't know unless you ask. Like ask for 27.50% r will you get it doubt but may get 25% or the least 22.5% the lowest I would take today. If you have lots of acres have good oil & gas attorney read and rewrite for you. Too much to outline on this post. Attorney to review best money you can spend will pay you mutiple times in return.

Permalink Reply by Headly on June 29, 2010 at 12:42

We have 60 acres. What would a guestimate range on income assuming an average find in that area? (Assuming that can be done.) We did find a local attorney too. That was great advice, we feel more confident.

Permalink Reply by adubu on June 29, 2010 at 13:31

estimate of income depend on well production, #acres in unit, price of gas, your % of royalty---- just for fun let say it a shale well with IP 15 mmcfd that should make quess for life of well over 20-25 years 5 bcf of gas and if gas over next 4 years (which is when you will get 65% of gas) avg $5/mcf. If you are in 640 acre unit your one well= 60/640 X %royalty in lease will use 20%= your net interest in well 0.01875 (1.875 net % of gross production minus severence tax and other expenses(assuming you do not have royalty free gas in lease) now 5bcf times $5 NG= 25,000,000 life of well. your part 0,01875 X 25,000,000=$468,750 paid over ~25 years avg $1562 per month. Now if over next 10-15 years they drill the unit out at 80-160 acres per well then you will have 4-8 total shale wells then you mutiple the above by 4 or 8 if 4 well and they are good wells then your income = $1.875 million. Don't go spending any of it until it happen and put 1st year royalty in bank with escrow 35% for income taxes and save the remainder then after one year look at enjoyment of income each month but remember the check will decrease by 75-80% after 1st year. This is a dream calculation but it could happen in time over next 10 years or so. This is reason terms of lease is so so so important and get attorney to review if you have chance for top lease. This 60 acres if it has good shale will be life changing for your family. You may have James Lime , travis peak, Cotton valley, and cotton valley lime also. If you hit it lucky and get at least one good well later look into family trust so your heirs can never sell the minerals ---sweet dreams

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