Replies to This Discussion

Permalink Reply by adubu on June 2, 2011 at 9:45

There is leasing especially around the city of San Augustine and Chireno area. If you have minerals to lease they will find you and surprise if you are unleased they have not called you. You can call EOG, EXCO, or XTO offices--get contact numbers at their online web site. If you want to sell there are lots of "legal thieves" out there so Caution!! Where are your minerals located -- what Survey??

Permalink Reply by jRose on July 7, 2011 at 15:33

Like I said , new to this and need all info I can get. Wondering if companies are leasing and for how much.

 

It is in the William Roberts Survey, Abstract #39, in San Augustine County, Texas and Willis Survey , Abstract #44, Sabine County.

Thanks

Permalink Reply by farmbrad on June 2, 2011 at 9:53

Location, location, location is the answer to whether there's any leasing activity. How much has been pretty darn quite for a while. In 2008 the rate was $5000 p/ acre before area was proven. A landman will probably tell you $2000 p/ acre is going rate now. I don't care what the economic scenario is today vs. 2008, I wouldn't lease for less than $5000 unless you get 25% cost free royalties. Just my opinion. If you're not absolutely destitute, don't consider selling minerals. You're going to get ripped off. Another one of my opinions.

Permalink Reply by adubu on June 2, 2011 at 10:39

farmbrad--- Don't get greedy with Bonus because your good money is in the ground and you can not get to it unless someone drills for you. I'll take 25% royalty in a minute without any bonus for one or two year lease to drill a horizontal well and bonus at end of lease at expiration if they do not drill a horizontal shale well. Difficult to get the royalty Free lease anymore. No HBP except with horizontal well. This is new twist on lease.

Permalink Reply by farmbrad on June 2, 2011 at 13:12

Interesting. I agree on money being in ground. The bonus at the end if no well could work. Cost free royalty might be a snag though unless royalty percentage is where it should be. Also, have read you really need a "net back" clause to protect the true cost free royalty. I really don't look at my logic as being greedy, just fair. I've noticed some units only including an acre or so of private land owner minerals when I know the family has much more land leased in the tract. I'm guessing without proper language in contract, the entire tract is being held by production. My message is to work the best deal you possibly can because the O&G's are doing the same.

Permalink Reply by adubu on June 2, 2011 at 13:21

with NG at $4.50 the operator can not pay you $5000 per acre unless you are in the "Sweet Spot" of wells that IP at 30mmcfd and have EUR of 9-10 Bcf and they can put a well in 80 acres spacing. Those are very RARE units.

Permalink Reply by farmbrad on June 3, 2011 at 1:11

I think I'm there. 8/10th of a mile from BS A-43  H1 & H2  ;)

Permalink Reply by adubu on June 3, 2011 at 3:12

fb--those are not 30 mmcfd IP wells

Permalink Reply by jffree1 on July 7, 2011 at 8:05

1 was 32.0, adubu.  See page 6.

Attachments:

• 20100614-capp-presentation.pdf, 4.5 MB

Permalink Reply by William Gardner on June 2, 2011 at 10:17

First, don't sell your mineral rights. 

 

Second, we will need to know where you are out there.  If you can provide an abstract name/number it would really help. 

 

Third, there have been a couple of maps published for San Augustine Co., I know I've put a couple out there, showing where some of the units are.  You can use those as a guide to see who is where.

Permalink Reply by jRose on July 7, 2011 at 8:19

Like I said , new to this and need all info I can get. Wondering if companies are leasing and for how much.

 

It is in the William Roberts Survey, Abstract #39, in San Augustine County, Texas and Willis Survey , Abstract #44, Sabine County.

Thanks

Permalink Reply by RBH on July 7, 2011 at 8:39

most recent leasing in Surveys 39 and 44 by EOG Resources and Crimson Exploration and Devon Energy

 

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