Replies to This Discussion

Permalink Reply by Bosco Ritchie on January 28, 2012 at 6:44

If the Range well is a dud, or a so so gas well, i think thee is a good chance the leasing will stop.

Permalink Reply by Dry Hole on January 28, 2012 at 6:54

Mary,

  I am not in that county but I am close by to the NE-- those values sound Real LOW for the Northern part of the county how much royalty are they offering ? and do you know the company names ? length of term?

Permalink Reply by Mary Wood on January 28, 2012 at 15:04

Both companies are offering 20%, with a 3 year lease and 2 year option.  The $200 company is R G Exploration.  The $100 company is San Luis Energy.  I just think back to what happened with the Haynesville Shale where they came in and leased a lot of land for $100, then the boom hit and those people were stuck out.  I do think the real money is in the royalty.  I don't want to make the wrong decision.  I know a lot of land owners have leased for $100.  The Scales Ranch well is probably less than 8 miles as the crow flies.

Permalink Reply by dbob on January 28, 2012 at 7:26

Mary

My advice is that if the area is productive, a good royalty rate is probably better than an up front bonus.  I suggest that you consider short term lease (1-3 years) with a 20 or 25% royalty.  If they want an automatic renewal for additional years, there should be a substantial bonus for that renewal.  

I strongly suggest avoiding leases with long terms, and automatic renewal at a low cost.  I also strongly suggest avoiding leases with less than a 20% royalty. Some of the others here might tell you what they have received although hey may want to message you privately.  

Finally, you might want to consider a vertical pugh clause - someone could produce a shallow wilcox well and hold deeper mienrals that might be mroe valuable in the long run

Permalink Reply by Dry Hole on January 29, 2012 at 2:56

Mary,

  The EFS "EAGLEBINE" play is moving at you from the SW to NE ---- I would be looking to the West South West over in Grimes county to see what might or might not be coming at you, also if those wells are gas or oil as gas is on the back burner as Boscoe states. Being SW, W, N, NE or E of the Range well (if it is good) could put you on strike but S or SE could put you in the gas zone.

  There could be other zones that we know nothing about as well and I think Boscoe told us in another thread (EFS Trend in Trinity) that the Apollo Well (drilling now) was a H Georgetown.

Permalink Reply by Mary Wood on January 29, 2012 at 3:02

Thank you so much for your guidance.  I drive from Austin to Huntsville weekly and I have seen the drilling moving this way.  I will see what I can find out. 

Permalink Reply by Texas54 on January 23, 2012 at 11:39

On the TRRC website Terrace has permitted a new well in the jH Moore survey. Will there be any aerial photos of Terraces drill sites in the next week or two?

Permalink Reply by Dry Hole on January 23, 2012 at 13:41

54,

 Terrace has yet to build any pads so all there would be is a stake with a ribbon on it (if there are cows in that pasture even that is already gone)   If you need some help locating these well sites in relation to your minerals-- someone here will be glad to help. And they can be located on a google map aerial photo pretty easy by using the Lat. & Long. given on the plat in the W1.

 If we happen to go somewhere by air we will try to take a few photos and post them here but flt time is too expensive to do that on a regular basis. But I am glad you liked the ones we posted.

Permalink Reply by dbob on January 23, 2012 at 13:52

LOL - the best stakes are t-posts - the cows still push on them, but if done right, won't knock them over.  

Permalink Reply by Texas54 on January 23, 2012 at 18:08

Guess I was a bit over zealous, :) I do like the photos I have seen. I can google the sights but I was hoping to see something more current in a few weeks.  I think the Jackson will be able to be seen from the road. But the new one from Terrace looks like it will be closer to the river. I check the TRRC often. I understand about flight time father was a  crop duster and  corporate pilot for many years. I am just a novice at oil and gas. But find the conversations here very interesting. So I will sit back and watch and read you posts.

Thanks

Permalink Reply by Dry Hole on January 24, 2012 at 14:23

All,

 Understand that the Parten H Dexter (eaglebine) well got stuck 3 times while making the turn but is now drilling ahead.

  Also hear that a new well is to be staked about 2 miles NE of Austonio as they are doing due diligence with the landowners  ----- so the play just keeps moving from S west to N east one well at a time

   The movement east of Lovelady seems to have stopped and I keep hearing that those wells are very low on liquids. All this is RUMOR of course. Maybe the XTO well will jump start that area again.

Permalink Reply by Dry Hole on January 24, 2012 at 16:44

jffree,dbob

  We have a new challenge-- EnCana is doing something that seems to be different over in Leon Co.  in the Halliday Woodbine ---- the plats on the Gresham well seems to show High perfs and Low perfs ------ Rig Data shows they are drilling on 289-31987 right now also these wells seem to be very far North in the play with LONG Laterals. If you want to start a New Discussion and thread on this District 5 venture just let me know as this thread is getting too long.

  Also I see that Navidad has amended the permit for the Gouldie well ---- I thought I had been taking pictures of it from the air did I OPPS and miss ID it ? ----- looks like I will have to fly low enough to read the signs from now on.  

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