Replies to This Discussion

Permalink Reply by Charmine on October 6, 2008 at 4:53

Hi Eric, lots of us are in agreement with you! It is too low. My offers started at $3500, and 25% and people say that is too low. I just want the going rate as well. The going rate appears to be somewhere between $500 and $8000, from the posts I have been reading. The general opinion seems to be that we should be able to get more then that if we are patient. Part of that patience may mean waiting until after the first of the year. Wait and see what the new president really will do, let hurricane season pass, and let the winter fuel prices kick in. My advice is wait and learn. Follow the posts on this website and learn. Watch the Railroad commission maps for drilling stats, and watch the drilling reports. I pull the drilling reports out of the Tyler paper every Sunday and post them under Shelby County. If you can find some good wells near your survey, hopefully that will give you some bargaining power to negotiate with. Come back often and ask questions, we will do what we can to help you! I don't live in the area, so I rely heavily on the information that you guys pass on to me...good luck!

Permalink Reply by Eat Beef on October 6, 2008 at 17:15

I own a business in Center, and live in Shelby County. I just read your story, and I'm not sure where the Bigger Abstract is located, but anywhere in Shelby County is good! Some areas are better than others. Does your wife know how she became owner of these minerals? It reminds me, of my two cousins, that live in Calif. We've never met, and after their mother, (my dads sister) passed away, none of the family ever heard of the girls again. When it came time to find all the mineral holders on the tract of land that I now own, the landman couldn't find these two girls. I told him all I knew, several times, and after about two years, I ask him, did you ever find my cousins...he said,,,No. By that time, there was already a producing well on their unit, and they were no where to be found. I laughed and said, I've told you where they were living when their Mother died...and you should be able to find her death records, and I've told you their ages, and first names, can't you find their SS#'s? The next time I went into the office, he said, "Oh, we found the girls." One of them was living in her mothers house, same address they had on the mother when they leased from her years ago. If you can follow what I have said so far, you will be interested to know, that while other folks in Shelby County were getting thousands, for their mineral leases, this (good )landman, sent them a lease to sign, with a small check for $150.00 an acre. He also sent them the moneys from the producing well. But, never did he tell them that Shelby County, was part of the Hainesville Shale, discovery. So, what I am saying, is don't go with that offer, I know several companies, that would love to make you a better offer.

Permalink Reply by Tom Johnson on October 16, 2008 at 14:19

Hi, Eat Beef, Ref. your post on Oct. 12, in the Lease deals in Oct./canceled drafts discussion, Can you get the street address for the Payne Bldg., please, and is it mr. McRenolds, or McReynolds??? My relative would like to contact him ref. our interests near Campti, CHK has already leased much of the nearby areas, so don't know if he would be interested, but it's worth a try, thanks, Tom

Permalink Reply by intrepid on October 16, 2008 at 14:50

The Payne Bldg in Center is just off the square on Shelbyville st.

Permalink Reply by Carter on October 7, 2008 at 17:41

Biggers Abstract is just South of Shelbyville near what locals call the Clever Creek area. 2 weeks ago I would have told you it was worth 5k/acre off the bat. OGL prices undergoing a sharp correction in Shelby due to credit crisis and liquidity issues with companies like CHK who are driving the play. CHK brokers in Shelby cut back to 2K my estimation in this area as of now. Its a falling knife, but since you were unaware, it is not like you will lose any money.

St. Mary's is legitimate, just targeting the James Lime and not the shale, not their objectives. They might pay you 1k/ac or so if you pushed them, as they have a lot of leases in the area. My people might deal at 2K/ac for a 3yr primary with a 2yr option at 3K; 1/4 royalty. Be glad to provide you with a local CHK broker contact as well. They might beat that at 2.5K or 3K/ac. That's a bird in hand today. Can't tell you what it will be tomorrow. Come January, Feb. of 09, it might by 8K/ac, but the days of 5K and 6K leases being thrown around at random are over with in the short term. Petrohawk only wants at least 160 ac blocks; they have pulled out of Shelby anyway. Hunt; Ellora; St. Mary's are not gonna pay the big bucks. Devon; Encana; Cabot do not have leases in your area. Common Resources might take that, as they have some leases in the area; I don't know how much right now, I'd say 2K/ac maybe.

I have no affiliation with any of the companies I just mentioned, just my 2cents. Best of luck to you, and congrats on the discovery of the minerals!

Permalink Reply by John on October 8, 2008 at 10:59

You might want to ask if this acreage comprises of 100% of the tract or is your acreage a portion of the tract. If it is only a portion, and St. Mary has leased the other portions, it might be in your best interest to lease to St. Mary. I have been told that Oil and gas companies will not deal with tracts that they end up sharing leases with other companies.

Permalink Reply by Lee Davis on October 13, 2008 at 17:05

What do you think of Southwestern Energy?

Permalink Reply by paige linn on October 15, 2008 at 9:48

Lee and Terry,
Who are you talking with at Southwestern? Do you have a phone number.

Permalink Reply by Lee Davis on October 13, 2008 at 17:03

We got an offer for $350.00 an acre with 3 year lease and 20%. We need help as all heirs live out of state. Should I come down to Texas and get an oil lease attorney? The landman's offer came from Southwestern Energy just a week ago.

Permalink Reply by Terry on October 13, 2008 at 17:40

Hi Lee - I left a message with Southwestern Energy and am waiting to hear back on whether they are interested in leasing our property. I would collect as much info as you can before hiring an attorney. There's a lot of info on Texas RR Commission's website (www.rrc.state.tx.us), and Shelby County Open Records (http://www.txcountydata.com).

Our property overlaps four Abstracts in Shelbyville TX (part of Eric's above), but our interest is only 50 acres (part of A-89, 94, 128 and 724). Our offer currently is $500 signing bonus and 20%, which we negotiated to get to. I have calls out to about a dozen drilling companies but as you may be are aware things are kind of on hold right now. Still, the phone offers I've gotten are better than the written contract from St Mary's.

Permalink Reply by Eric on October 14, 2008 at 0:37

Terry it seems ironic that just last week we met with a landman from St mary's and our offer had increased to $400.00 and a fifth. The total MR's that my wifes family has is 50 acres. While we hear about the telephone offers of $1000.00 and up our concern is two fold, the economy and talks about slowing down drilling and then if St Mary's has the land tied up around us why would another company be interested in a small portion of land. I think that everyone knows the real money from O&G comes from an actual producing well being on your property and the royalties paid for that. While I agree that the big bonus money would be nice, I would be more inclined to increase the royalty percentage somewhat...

Permalink Reply by Lee Davis on October 21, 2008 at 5:41

Terry,

We are wanting to be part of a unit. A-585 is over 4000 acres. I wish I knew if they have any units formed, although the oil company says they don't have a unit formed in our area. They have the option of chosing who will be brought into a unit and who won't. We know of dealings where you think all is well but if you are not chosen to be in a unit and I mean have it in writing in your contract, they can cut you out. I have heard of so many dirty deals in researching this, it makes me sick.

Lee

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