Replies to This Discussion

Permalink Reply by Janna on October 7, 2008 at 16:51

Does anyone know why my mother wants to sell her land? To Cinco?

Permalink Reply by jffree1 on October 8, 2008 at 6:34

You need to ask your mother that question. You also need to do some research on Cinco. They were calling me back in Feb., March with really low offers and are probably looking for flips. They want to make a profit on it somehow. If you are new to this site, you need to become aware of what is happening around you with other land owners. Talk to people in her area to see what kind of offers they are getting. Cinco is not the only company that may be interested in her land and I advise that you do not act hastily. Take enough time to make an informed decision. It could lose you a lot of money if you get in a hurry.
If you would be a little more specific about where your mother's land is located, size of tract, etc... there are any number of folks on this site who will offer suggestions/help.

The simple answer to your question is that there is an enourmous field of natural gas under East Texas and North West Louisiana and because of this there is an equally enourmous land grab taking place. Companies like Cinco are looking for people (who don't know what's going on) who will sell/lease them land (and don't believe they don't want the minerals[read ALL of the fine print]) cheap so they can trade/sell it to someone else for a profit.

Permalink Reply by Janna on October 8, 2008 at 9:18

My mother has about 30 acres in Hemphill on the north side, west of 87. She also has about 70 acres in San Augustine on the Farm to market road 1277.
She is old, bed ridden and I am not sure she is in her right mind. Her mother just recently died @ 102 yrs. buried at Gravel Hill cemetery.
She does not seem to want to research or listen. First offer she has had.
Thank you for replying jffree1

Permalink Reply by jffree1 on October 8, 2008 at 14:01

Like I said...take your time and do some homework. Both of those areas are being leased as of last week. Encanna has an office in San Augustine and they are leasing around FM 1277 near Hwy 103. I would call them or go by and visit if it was my land.
Devon is active in the Gravel Hill area and has been offering 5K to 6K an acre for a 3 yr. lease. They have an office in Hemphill. Phone # 787-1048.
I have not talked to Encanna but I have heard that their offers are in the same range. I would advise against selling any land with the minerals. And don't let them talk you into signing their standard lease. That's a good way to lose money.
If you don't know anything about oil & gas leasing you should get an attorney to help you. There is a lot of money at stake and anything you spend on an attorney will be well worth every penny. Good luck and let us know what transpires if you talk to these folks, please.

Permalink Reply by jffree1 on October 9, 2008 at 8:19

Update!

Devon has put all leasing on hold in Sabine County due to the present credit situation. It is supposed to be short term only, a couple of weeks, but I'm sure that it will depend on how well the lenders respond to the band-aids that are being applied by the fed.

They say they are still going to honor any drafts they have out which have not funded yet but they will not be issuing more in the near future. That being said, they are still running title at the courthouse...so who knows?

Permalink Reply by jffree1 on October 10, 2008 at 16:54

Apparently Devon (or someone with DJ Energy) has made a statement that they always slow down leasing in the 4th Qtr. They said they are still leasing but only in very specific areas. I did not see this report so this information is heresay.

Permalink Reply by farmbrad on October 8, 2008 at 15:50

Janna,
We just leased our land to Encana last week at the FM1277/1196 fork for $5,000 an acre. Jffree is right ..... do not sell. Go visit Encana in San Augustine & get a lawyer if you're not familiar with contracts. Rebecca Brightwell in Lufkin has assisted folks I know with Encana. She'll charge $500 or so.... good luck!

Permalink Reply by jffree1 on October 10, 2008 at 16:48

Janna,

I got an offer in the mail from Cinco, today. They are leasing for Sampson Lonestar, LLP.
Sampson is drilling some deep wells in counties north of us. They only offered $250.00 an acre and 1/5th royalty. If that is what you got from them, I think you can do a lot better than that. You may have to wait awhile but I don't think Cinco has made the last offer you are going to get. In case you are wondering, I am not interested in their current offer. They will have to do better than that.

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