Replies to This Discussion

Permalink Reply by jffree1 on January 29, 2010 at 4:18

jerry smith, I don't doubt that you own considerable acreage and I'm certainly not mad. What I am having a problem with is that you told us, on the San Augustine page, that you had signed a lease in A-139 on 200 acres for 15K/27%. Now, you post that XTO is OFFERING 1500/25% and you want 15K/27%.

It just goes against your credibility when you post conflicting information. We would all like to lease for 15K and 27% but the reality is that no one in San Augustine County, other than yourself, has reported offers like that. If the offers are being made... no one is talking about it! I HAVE heard 6K and 25% which, IMO, is pretty good for an unproved (Goodwin School) area.

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Permalink Reply by jerry smith on January 29, 2010 at 7:04

i am just saying that what they offer me on some more property that i own in that survey it dosent mean i took the offer.

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Permalink Reply by Bobi Carr ("parker") on January 29, 2010 at 7:08

So what are you holding out for? 30,000 and 30%? Just curious.

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Permalink Reply by Spring Branch,mineral owner on January 29, 2010 at 4:03

$15,000 and 27% RI..........Good Luck!

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Permalink Reply by jerry smith on January 29, 2010 at 9:45

i am holding out because its going be getting real good in next two years. And i dont need the money so i can hold out. That how the oil companys get you when your in need for money like alot people are. so if you can hold out do and dont listen to people that dont know a lot about oil and gas . That area is a tight hole and you are not going to get the information that a lot of people think they are going to get.

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Permalink Reply by Just Saying on January 29, 2010 at 11:24

dont listen to people that dont know a lot about oil and gas

Don't worry we wont, so you can stop posting now.

Thanks,

Just Saying

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Permalink Reply by j garrett on January 29, 2010 at 12:35

A bird in the hand Jerry..... They could perfect fusion energy, or hit monster fields elsewhere, or flood the market with LPG or whatever whatever whatever. Get a good offer and a good lease, but don't be foolish. Even $1500 was unheard of not so long ago. $200 an acre and 1/5 was top dollar just two years ago, $150 and 3/16ths just three years ago. The bubble could easily burst somehow. Your scrub brush could be worth zero. What did you pay for it? $100 an acre? Did you inherit it? Yet you think they are screwing you with a $1500 offer?

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Permalink Reply by jerry smith on January 30, 2010 at 4:57

i own it and payed for it cash 465 acers in three tracts

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Permalink Reply by j garrett on January 31, 2010 at 4:59

So, the people you bought from got screwed? Sorry Jerry. Not really trying to pick a fight. If you can get $15k & 27% , then great! As a matter of fact, in that area, $1500 is probably low. But I would strongly consider say $5000-$7500 per ac, or maybe leasing only a select zone or two, saving the other(s) to lease to someone else. But, when they are interested you should strike while the iron is hot. They've probably got several hundred thousand other acres to drill and they are trying to line out their drilling schedule and pipeline infrastructure and storage issues. They could follow the path of least resistance and move on to another (more economical) area. Counter offer $5000 for the either the James Lime or the Haynesville (not both, saving the other), 1/4 royalty which escalates to 27% after payout (after the well has paid for itself). 3 year deal with a drilling commitment (giving them time to do their business but requiring a well). Save whatever is below the Haynesville and above the James (maybe shallow oil). Good luck and please keep us posted.

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Permalink Reply by Cheerleader on January 31, 2010 at 10:33

j garrett,
Great advise to every one. Except I think in this area, Jerry could start negotiating between $10,000 and $15,000 per acre. Good Luck Jerry. We are all behind you!!!!

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Permalink Reply by jerry smith on February 1, 2010 at 2:52

iam glad some one is with me and under stands the area

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Permalink Reply by Skip Peel - Mineral Consultant on February 1, 2010 at 4:09

Euphoria and great expectations come to E. TX. Does it seem like a familiar tune to anyone? It reminds me of NW. LA. 2008. Members of GHS should be more aware than most of the circumstances of that story. Members at that time shared that roller coaster on a daily basis and will recall quite a few comments that sounded eerily like the above posts. Those that were not around can find a large portion of the site archive devoted to it. There were a lot of inexperienced members searching for information and preaching a mantra of ever increasing lease offers and forcing the exploration and production companies to do it their way or they'd just hold out. A few even took other members to task for making deals that they thought were too low. And accused them of devaluing their neighbors tracts and supporting the companies. We all know how that turned out. The 6 to 8 months that followed were devoted in large part to all the missed opportunities and anger over those same companies pulling out of deals that many thought were done. I am not forecasting another global recession/depression. And I am not trying to make a case for E. TX. mineral owners to take the first offer that comes along. Knowledge is power and GHS is one of the best sources of knowledge concerning the HS Play. There are other actions that land/mineral owners can take on their own which are taught here. A trip to your local Clerk of Courts office being an excellent example. My past experience tells me that those who do not do their homework and only listen to the euphoric rumors and opinions of unknown persons on a website, can find themselves disappointed and mad.

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