Nacogdoches County

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All things pertaining to leasing, exploration and production in Nacogodoches County, Texas.
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EOG's Lease Proposal

by Elaine Callahan

Jan 5, 2010

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.
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  • up

    Elaine Callahan

    Good Morning,

    Still have not leased my 30 acres, but have received a letter yesterday from Athem Oil & Gas, Inc. asking about buying my mineral/royalty interests. I'm not sure what the difference is from a normal lease for a specific time. Can anyone give me any information?

    Thanks for all the educational about these things.
    1

    Aug 12, 2010

    • up

      Elaine Callahan

      Many thanks for all the advice....still got my mineral rights! Have a fantastic day!

      Aug 16, 2010

      • up

        J B Nabors

        You should be able to get a 25% royalty and a larger bonus.  SEE an O&G Attorney before signing anything.  The royalty percentage is significantly more important than the leasing bonus, although you should be able to improve both sides of your offer.

        Don't be in a hurry to sign.  Time is on your side--as the play develops around you, you will get a better view of what is there, and how much it is worth.  NEVER sign the first lease they offer you. 

        Oct 16, 2012